Berkshire invests in Ulta Beauty, Heico as it retreats from Apple
Adds Heico comment, updated after-hours stock prices, paragraphs 3, 6-7
By Jonathan Stempel
Aug 14 (Reuters) -Warren Buffett's Berkshire Hathaway BRKa.N acquired stakes in cosmetics store chain Ulta Beauty ULTA.O and aircraft parts maker Heico HEI.N during the second quarter, when it also nearly halved its huge stake in Apple AAPL.O.
Berkshire owned about 690,000 Ulta Beauty shares worth $266.3 million and 1.04 million Heico shares worth $185.4 million as of June 30, according to a Wednesday regulatory filing containing its U.S.-listed holdings as of that date.
Ulta Beauty shares soared 14% and Heico shares rose 3% in after-hours trading, reflecting a belief that the companies won Berkshire's and perhaps Buffett's stamp of approval.
Wednesday's filing did not say whether Buffett did the buying, though his portfolio managers Todd Combs and Ted Weschler normally oversee Berkshire's smaller stock investments.
Ulta Beauty did not immediately respond to requests for comment.
Heico Co-President Eric Mendelson said he was honored to have Berkshire invest, citing both companies' decentralized business models. Shares of Hollywood, Florida-based Heico are up 32% this year through Wednesday's close.
"I assume that Berkshire is bullish on the aerospace industry as we are," Mendelson said in a phone interview.
While better known for owning Geico car insurance, the BNSF railroad and Apple stock, Buffett's Omaha, Nebraska-based conglomerate has stakes in many consumer and retail businesses.
Its business portfolio includes brands such as Benjamin Moore, Dairy Queen, Duracell and Fruit of the Loom, and about $2.5 billion of stock in grocery chain Kroger KR.N.
Ulta Beauty, based in Bolingbrook, Illinois, has about 1,395 stores in all 50 U.S. states.
Berkshire is also familiar with the aerospace sector, having paid $32.1 billion in 2016 for aircraft parts maker Precision Castparts, still its largest purchase of an entire company.
Buffett later admitted he overpaid for Precision, which struggled with falling air travel during the COVID-19 pandemic and the grounding of Boeing BA.N 737 MAX jets.
SNOWFLAKE EXIT
Ulta Beauty and Heico were among Berkshire's few purchases in a quarter marked by a hasty retreat from stocks.
Berkshire sold $77.2 billion of stocks during the period, including about 390 million shares of Apple,and bought just $1.6 billion.
Sales included a nearly $1 billion investment in cloud computing company Snowflake SNOW.N and Berkshire's remaining stake in media company Paramount Global PARA.O.
The selling left Berkshire with $276.9 billion of cash and equivalents, up from $189 billion at the end of March.
Buffett's company has not said if it has since sold more Apple, though Buffett said in May he expected the iPhone maker to remain Berkshire's biggest stock holding by year-end.
Berkshire has sold more than $3.8 billion of stock in Bank of America BAC.N, its second-largest stock holding, in the third quarter. It stopped selling at least temporarily after the bank's share price fell 12% from mid-July.
During the second quarter, Berkshire also reduced its stakes in Capital One COF.N, Floor & Decor Holdings FND.N, Louisiana-Pacific LPX.N and T-Mobile TMUS.O, and added to stakes in Chubb CB.N and Sirius XM SIRI.O.
Buffett turns 94 on Aug. 30. He has run Berkshire since 1965.
Reporting by Jonathan Stempel in New York; Additional reporting by Allison Lampert in Montreal; Editing by Marguerita Choy and Jamie Freed
Aset Berkaitan
Berita Terkini
Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
