Warren Buffett's Berkshire Hathaway added new bets to its equity portfolio in the third quarter, a regulatory filing revealed. The legendary investor built a $475 million stake in Royalty Pharma , owning more than 13,000 shares at the end of September, the filing with the SEC showed. The conglomerate also added a near $100 million bet on Floor & Decor Holdings . Floor & Decor has been benefitting from a pandemic boom of home remodeling and renovation, seeing its shares jump another 40% this year following a 80% rally in 2020. Shares of Floor and Decor jumped more than 7% in extended trading on Monday following Berkshire's disclosure. Royalty Pharma, a firm that funds expensive clinical drug trials, went public in June last year. The stock is down more than 16% in 2021. The new stakes, while notable, are relatively small and could be the work of his investing lieutenants Todd Combs and Ted Weschler. The duo influenced the decision to buy into Apple a couple years ago and helped drive growth in Berkshire's portfolio by dipping into other tech stocks and IPO investments. Buffett had made few stock picks during the pandemic as the market rebounded swiftly from the Covid-induced sell-off. Seventy percent of Berkshire's equity portfolio was tied up in just four names — Apple , Bank of America, Coca-Cola and American Express . Its top 10 holdings remained nearly unchanged compared to the previous quarter. In the third quarter, Berkshire also increased its Chevron bet to 28.7 million shares, worth about $2.9 billion, from 23.1 million shares, the filing showed. Meanwhile, the conglomerate pared back its exposure to the pharmaceutical industry. The company exited its position in Merck and Organon & Co. , while decreasing its bets on AbbVie and Bristol-Myers. The conglomerate has been buying back its own stock aggressively in lieu of deal-making as the company's cash pile hit a record high.
Warren Buffett at Berkshire Hathaway's annual meeting in Los Angeles, California. May 1, 2021.
Gerard Miller | CNBC
Warren Buffett's Berkshire Hathaway added new bets to its equity portfolio in the third quarter, a regulatory filing revealed.