Berkshire Hathaway Adds Exxon and Nestle to its Portfolio

Published on Tuesday, 17 November 2009 06:47 Written by Christopher Lynn

Omaha, Nov. 17 (TradersHuddle.com) – Warren Buffett has been busy drawing down Berkshire’s cash reserves to invest and position the company to succeed as the credit markets and the economy improves.

Earlier in the month Buffett agreed this month to take over Burlington Northern Santa Fe (NYSE:BNI), the No. 1 U.S. railroad, for $26 billion. Now in a regulatory filing, Berkshire Hathaway (NYSE:BRK-B) disclosed it took stakes in Exxon Mobil (NYSE:XOM) and Nestle SA, betting on the world’s biggest oil and food companies.

Berkshire held about 1.28 million Exxon shares and 3.4 million American depositary receipts of Nestle at the end of the third quarter. The stake in oil giant, Exxon would be worth about $95 million, based on yesterday’s stock price, while the Nestle holding would be valued at $161.5 million. Berkshire also raised its stake in Wal-Mart Stores (NYSE:WMT) as it increases its bet on the largest retailer.

The Oracle of Omaha spent $2.23 billion on stocks during the 3^rd quarter, the most in a year and allowing him to add a stake in insurer Travelers (NYSE:TRV) and increase its stake in Wells Fargo (NYSE:WFC). The Omaha based company is clearly building stakes in large companies with world class brands that can weather much better the economic uncertainty and will benefit as the global economic recovery gains momentum.