Berkshire Hathaway is required to provide updates to the Securities and Exchange Commission (SEC) quarterly on its portfolio of publicly traded companies. These reports are scrutinized by many investors and can often affect sentiment on a stock, depending on whether Berkshire is adding more to its holdings, reducing its stake, or keeping it at a level.
While this makes it easy for the public to follow changes in the portfolio, the reason (s) for Berkshire’s move into a stock is often a mystery. Neither the company nor Buffett, its longtime CEO, immediately disclose their motives.
Like many investors, Buffett can typically downgrade on restoration stocks given the pounding they took during the pandemic. Still, Restaurant Brands International isn’t doing badly, all things considered. She has managed to recover her income to around 90% of the sales levels she had before the outbreak spread around the world. By the end of the company’s second quarter, 93% of its restaurants were open to at least take out and deliver.
Perhaps this is why investors ignored Buffett’s divestment on Friday. Restaurant Brands International shares rose 0.1% on the day. Meanwhile, both classes of Berkshire shares fell slightly.