Confluence Dumps 42,203 BRK-B Shares in Q2

Key Points

• Sold 42,203 shares of Berkshire Hathaway, reducing exposure by $21.49 million.

• Post-trade, the fund holds 101,968 shares valued at $49.53 million.

• Berkshire Hathaway remains a mid-sized holding, accounting for 0.70% of the fund's reported equity AUM.

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On July 1, 2025, Confluence Investment Management LLC disclosed the sale of 42,203 Berkshire Hathaway(NYSE:BRK-B) shares, reducing its position by $21.49 million for the quarter ended June 30, 2025, according to SEC data.

What happened

According to a July 1, 2025 SEC filing, Confluence Investment Management LLC reduced its stake in Berkshire Hathaway by 42,203 shares during the quarter ended June 30, 2025. The transaction represented $21.49 million in trade value. Following the sale, the fund's total holding is 101,968 shares, worth $49.53 million. The fund reported total 13F assets of $7.08 billion and 526 positions.

What else to know

Trade direction: sell; post-trade Berkshire Hathaway stake is 0.70% of reported 13F AUM

Top holdings after the filing:

SGOV: $238.64 million (3.4% of AUM)

CB: $158.86 million (2.2% of AUM)

SNA: $156.07 million (2.2% of AUM) as of June 30, 2025

PAYX: $151.95 million (2.1% of AUM)

NTRS: $150.20 million (2.1% of 13F AUM)

Berkshire Hathaway shares closed at $485.00 on July 4, 2025, up 19.14% over twelve months, outperforming the S&P 500 by 5.2 percentage points (source: Financial Modeling Prep, as of July 4, 2025)

Dividend yield: 0.00%; forward price-to-earnings ratio: 62.40; EV/EBITDA: 8.26 (source: Financial Modeling Prep)

Shares trade 10.53% below their 52-week high; five-year revenue CAGR is -11.52%

Company overview

Company snapshot

Operates in insurance, reinsurance, freight rail transportation, utilities, energy, manufacturing, retail, and financial services worldwide

Business model centers on acquiring and managing a diverse portfolio of wholly owned subsidiaries and equity investments

Serves a global customer base across multiple industries, including insurance, transportation, energy, and consumer goods

Berkshire Hathaway is a global conglomerate recognized for its diversified portfolio spanning insurance, transportation, utilities, manufacturing, and retail. Its decentralized structure allows subsidiaries to operate independently while contributing to the company's overall financial strength.

Foolish take

Berkshire Hathaway shares have taken a hit over the past couple of months or so, ever since Warren Buffett announced that he will remain a chairman, but will step down from his role as chief executive officer (CEO) at the end of 2025. Between May 3 and at the time of this writing, the stock has fallen 11.5%, offering long-term investors a great opportunity to buy.

Berkshire Hathaway's massive portfolio of diversified assets, which include GEICO insurance, BNSF railway, and several regulated utilities, can withstand economic turmoil given the recession-resilient nature of several of these businesses. In 2024, Berkshire Hathaway exceeded Buffett's own expectations, generating a record $47.4 billion in operating earnings despite 53% of its 189 businesses reporting a decline. Operating earnings exclude capital gains or losses on the stocks and bonds Berkshire Hathaway owns.

For those in the know, Berkshire Hathaway also owns shares in over 40 publicly-listed companies, with tech giant Apple ranking as its top holding.

Greg Abel will take over as the of CEO Berkshire Hathaway at a time when the company is sitting on a massive cash balance of nearly $350 billion -- held primarily in short-term U.S. treasury bills -- ready to be deployed as and when the company sees an opportunity. Or as Buffett put it during Berkshire Hathaway’s last annual earnings release, “Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses, whether controlled or only partially owned.”

Rest assured, Berkshire Hathaway should remain in good hands even after Buffett’s retirement, and management’s investing philosophies should continue to generate meaningful returns for shareholders in this blue-chip stock.

Glossary

13F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.

Assets under management (AUM): The total market value of investments managed by a fund or firm on behalf of clients.

SEC filing: Documents submitted to the U.S. Securities and Exchange Commission, often used to disclose financial or ownership information.

Trade direction: Indicates whether a security was bought or sold in a transaction.

Equity AUM: The portion of assets under management specifically invested in stocks or equity securities.

Dividend yield: A financial ratio showing how much a company pays in dividends relative to its share price.

Forward price-to-earnings ratio: A valuation metric comparing a company's current share price to its expected future earnings per share.

EV/EBITDA: A valuation ratio comparing a company's enterprise value to its earnings before interest, taxes, depreciation, and amortization.

CAGR (compound annual growth rate): The average annual growth rate of an investment over a specified period, assuming profits are reinvested.

Reinsurance: Insurance purchased by insurance companies to manage risk by sharing potential losses with other insurers.

Conglomerate: A large corporation owning businesses in diverse industries, often unrelated to each other.

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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.