Peter Smith
Warren Buffett's Berkshire Hathaway (BRKB) takes new stakes in Ulta Beauty (ULTA) and Heico (HEI) while boosting its investment in Sirius XM (SIRI), leading to significant stock movements.
Buffett’s Berkshire Hathaway Adds Ulta Beauty (ULTA) and Sirius XM (SIRI) to Portfolio
Warren Buffett’s Berkshire Hathaway (BRKB) made strategic moves in the second quarter, taking new positions in Ulta Beauty (ULTA) and Heico (HEI), while significantly increasing its stake in Sirius XM (SIRI). This latest disclosure, revealed through a 13F filing on Wednesday, has sparked notable reactions in the stock market.
On Thursday, Ulta Beauty stock surged by 11.2%, reflecting investor confidence in the retailer. Sirius XM shares followed suit, rising 3.8% as Berkshire Hathaway’s expanded stake in the satellite radio company caught attention. Meanwhile, Heico saw gains as high as 9.3% intraday, though it closed with a more modest increase of 1.1%.
1. Ulta Beauty (ULTA) Rallies Despite Challenges
Buffett's decision to buy Ulta Beauty stock comes after a challenging period for the beauty retailer. Earlier this year, Ulta warned of slowing demand, causing a sharp decline in its stock. However, Berkshire’s investment has renewed optimism, driving a double-digit percentage increase in Ulta’s shares.
2. Sirius XM (SIRI) Boosted by Buffett’s Buy
Sirius XM (SIRI) also benefited from Buffett’s interest, with Berkshire adding more than 96 million shares to its portfolio during Q2, according to whalewisdom.com. The move reflects Buffett’s belief in the company’s potential, despite the broader challenges faced by the media industry. As a result, Sirius XM stock posted a solid 3.8% gain on Thursday.
Buffett Continues Strategic Stock Exits
In addition to the new purchases, Berkshire Hathaway exited its positions in Paramount Global (PARA) and Snowflake (SNOW) during Q2. These sales come as Buffett continues to manage the portfolio actively, navigating the ongoing market volatility and preparing for potential economic downturns.
Despite the shifts, Berkshire Hathaway’s investment strategy remains focused on long-term value. The company’s $300 billion stock portfolio continues to attract investor attention, with any moves by Buffett often causing ripples across the market. For example, Chubb (CB) stock saw a breakout in May after Berkshire’s 13F filing revealed a new $6.7 billion position.
On the stock market today, Berkshire Hathaway’s Class B shares rose by 0.5%, recovering from a recent dip below a 430 buy point. The stock is now up 23.4% year-to-date, underscoring the continued strength of Buffett’s investment approach, even as he adjusts to changing market conditions.
Peter Smith
