The conglomerate reduced its holdings in the investment bank to 1.9 million shares against 12 million shares, according to documents filed by the SEC on Friday. Goldman Sachs’ share price plunged by almost a third in the first quarter as the new coronavirus swept the nation.
Berkshire Hathaway initially invested in $ 5 billion of preferred shares in the company of Wall Street in 2008, within the framework of a vote of confidence towards Goldman Sachs at the height of the financial crisis of 2008. He bought these shares in 2011, Berkshire made a profit of $ 3.7 billion.
A Berkshire Hathaway representative did not immediately respond to a request for comment.
The company remains a majority shareholder in other financial companies, including American Express ((, )Bank of America ((, )PNC Financial (( and )Wells fargo ((. )
At the company’s annual meeting on May 2, Buffett said that “I think overall the banking system will not be the problem” during the pandemic, although he added that if economic hardship becomes sufficiently serious “even solid banks can be under a lot of stress, and we will be very happy to have the Federal Reserve system behind them.” ”
This is not the only major change that Berkshire has recently made to its portfolio.
Buffett revealed at the annual meeting that the company had sold its entire stake in the airlines American ((, )United ((, )Delta (( and )Southwest Airlines ((, which account for more than 80% of air travel in the United States. Berkshire was among the top three shareholders of the four airlines. )
“It turned out that I was wrong about this company, because of something that was by no means the fault of four excellent CEOs,” said Buffett.
In its first quarter results, Berkshire also revealed that the conglomerate had a cash record of $ 137.3 billion at the end of the quarter in March.