Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) bought shares worth $9 billion in the third quarter, as per the company’s latest 13F SEC filing. Berkshire took new positions in three stocks – 60 million shares of Taiwan Semiconductor Manufacturing Co. (TSM), 5.8 million shares of Louisiana-Pacific (LPX), and 433,558 shares of Jefferies Financial Group (JEF).
Furthermore, Berkshire continued to build its stake in energy stocks Occidental Petroleum (OXY) and Chevron (CVX). Buffett’s conglomerate also increased its stake in Celanese (CE), Paramount Global (PARA), and RH (RH), formerly called Restoration Hardware.
Meanwhile, Berkshire closed its position in Real Estate Investment Trust (REIT) Store Capital (STOR) by selling the remaining 6.9 million shares. Additionally, it reduced its stake in Kroger (KR), General Motors (GM), Activision Blizzard (ATVI), Bank of New York Mellon (BK), and US Bancorp (USB).
Let’s take a look at Wall Street’s ratings for the three stocks that Berkshire added in the September quarter.
Taiwan Semiconductor Mfg. Co. (TSM) Stock
Taiwan Semiconductor is the largest semiconductor foundry and is a major source of chips for the global supply chain. Last week, the company impressed investors by announcing a 56% rise in its October sales despite demand concerns in the chip industry.
Is TSMC Stock a Good Buy?
Wall Street is highly bullish on Taiwan Semi stock, with a Strong Buy consensus rating based on four Buys and one Hold. The average TSM stock price target of $93 implies nearly 28% upside potential from current levels. Still, shares are down 39% year-to-date.
Louisiana-Pacific Corporation (LPX) Stock
Louisiana-Pacific is a leading provider of high-performance building solutions. It manufactures engineered-wood building products to cater to the needs of builders, remodelers, and homeowners. Earlier this month, LPX topped analysts’ expectations even as Q3 adjusted EPS declined 51% to $1.72. Overall net sales declined 16% but the company continued to experience strength in its Siding Solutions division.
Is Louisiana-Pacific Corp a Buy?
Wall Street is cautiously optimistic on LPX stock, with a Moderate Buy consensus rating based on three Buys, one Hold, and one Sell. At $69.80, the average Louisiana-Pacific stock price prediction suggests 18.5% upside potential. Interestingly, LPX stock has plunged over 23.4% so far this year.
Jefferies Financial Group (JEF) Stock
Jefferies Financial is an investment banking and capital markets firm. The company delivered upbeat fiscal third-quarter earnings, as the solid performance of its merchant banking division helped in offsetting weak deal-making in the period.
Is JEF Stock a Buy, Sell, or Hold?
Jefferies Financial scores a Strong Buy consensus rating based on three unanimous Buys. The average JEF stock price target of $40.67 implies 10.3% upside potential. Shares are down 3.3% year-to-date and have fared better than the broader market.
Ending Thoughts
As per the latest 13-F filing, Berkshire’s portfolio value decreased to $296 billion at the end of Q3 from over $300 billion at Q2-end amid macro challenges.
Berkshire’s significant purchase of Taiwan Semiconductor reflects the company’s confidence in the long-term prospects of this semiconductor giant despite ongoing weakness in the broader chip industry.
Tracking a hedge fund’s stock positions could be insightful and beneficial for retail investors.
Find out which stock the biggest hedge fund managers are buying right now.
