SEC Filing Shows Buffett Played It Safe Ahead of His Burlington Northern Buyout

Having gone “all in” on a U.S. economic recovery with his $44 billion acquisition of Burlington Northern Santa Fe Corp. (NYSE: BNI), Warren Buffett showed a less aggressive stance in Berkshire Hathaway Inc.'s (NYSE: BRK.A, BRK.B) Nov. 16 filing with the Securities and Exchange Commission (SEC).

Buffett trimmed Berkshire's holdings in riskier businesses that have uncertain futures, such as newspapers, healthcare companies, and credit ratings agencies in favor of more stable long-term picks such as Wal-Mart Stores Inc. (NYSE: WMT) and ExxonMobil Corp. (NYSE: XOM).

The 13-F filing showed that as of Sept. 30 Berkshire had increased its Wal-Mart holdings by almost 90% over the summer, adding 18 million shares worth nearly $1 billion.

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Berkshire also jettisoned 7 million shares of ConocoPhillips (NYSE: COP), while revealing a new $95 million stake in ExxonMobil. In a separate filing released Monday Berkshire revealed it had 854,490 shares of Exxon on its books at the end of the second quarter – something that was not included in the company's original second-quarter SEC filing. Berkshire held 1.3 million shares as of Sept. 30.

The company's most recent SEC report – which noted that some “confidential information has been omitted” – showed Berkshire increased its stake in Wells Fargo & Co. (NYSE: WFC) by 3.6% to 313.36 million shares.

The company also added a new stake of 3.4 million shares of Nestle SA (OTC ADR: NSRGY) and 3.625 million shares of Republic Services (NYSE: RSG).

Berkshire eliminated its stakes in Eaton Corp. (NYSE: ETN) and WABCO Holdings Inc. (NYSE: WBC).

The moves show Berkshire taking a conservative approach to its $44 billion acquisition of Burlington Northern, which included $10 billion worth of debt. Buffett referred to the acquisition as “an all-in wager on the economic future of the United States,” which is still struggling to emerge from its worst economic downturn in 70 years.

News and Related Story Links:

• Securities and Exchange Commission
  Berkshire Hathaway Inc. 13-F Filing: Sept. 30 2009

• Money Morning:
  Buy, Sell or Hold: Buffett's Berkshire Hathaway Inc. Has Been Masterfully Managed and Will Continue to Benefit Investors

• Money Morning:
  Buffett Bets on Bright U.S. Economic Future With Burlington Acquisition

• Money Morning:
  Berkshire's Back, So What's Warren Buffett Buying Now?