Berkshire's 13F Mystery: Delta and Macy's Added, Japan Stakes Keep Growing

Berkshire Hathaway (BRK.B) significantly trimmed its equity portfolio in Q1, as newly appointed CEO Greg Abel unwound many of the smaller positions managed by former portfolio manager Todd Combs, who left for JPMorgan late last year. Yet two new names — Delta Air Lines and Macy's — have sparked a guessing game on Wall Street: who bought them?

Delta Air Lines — Buffett Says He Had No Part

A $2.6 billion Delta Air Lines (DAL) position appeared in Berkshire's March 31 filing. The stock has since rallied 8.4%, pushing the position to roughly $3.0 billion. Buffett told the Wall Street Journal he was not involved in the Delta decision — a pointed disclaimer for a man who famously declared a 'farsighted capitalist' should have shot down Orville Wright at Kitty Hawk.

Barron's argues Ted Weschler, Berkshire's remaining portfolio manager, most likely made the call. Abel raised Weschler's discretionary limit from 5% to 6% of the portfolio this year — roughly $3 billion — and Delta's $2.6 billion sits squarely within that range. A value stock trading at about 10x earnings also fits Weschler's known style.

Macy's at $55M — Buffett's 'Tiny' Purchase?

The Macy's (M) stake was worth just $55 million at quarter-end — less than 0.02% of Berkshire's equity portfolio. But in a March CNBC interview, Buffett mentioned he made 'one tiny purchase.' CNBC and Barron's both speculate the comment may refer to Macy's. Barron's points to Buffett's 2015 personal investment in Seritage Growth Properties — the real-estate entity spun out of Sears — as precedent for his interest in undervalued retail real estate. The Macy's position has since gained 14.2%, including a 12.2% surge this past week.

Japan Trading Houses — Mitsubishi 11.1%, Sumitomo 10.3%

Berkshire has filed updated disclosures in Japan showing its Mitsubishi stake rose from 9.7% to 11.1% as of April 30, and its Sumitomo stake climbed from 9.3% to 10.3% as of May 12. The combined disclosed value of all five Japanese trading houses now stands near $46 billion. Abel, who has overseen the Japan investment strategy for several years, is almost certainly behind the additions. Because Japanese disclosure rules are triggered only when a stake increases by 1% or more, Berkshire may be quietly accumulating in the other three trading houses as well.

Related Stocks & ETFs

BRK.B — Berkshire Hathaway / DAL — Delta Air Lines / M — Macy's / 8058.T — Mitsubishi Corp / 8053.T — Sumitomo Corp