Verizon Climbs 4% After Warren Buffett Reveals Nearly $9 Billion Investment

Berkshire Hathaway invested $8.6 billion in Verizon stock through the quarter that ended December 31.
Verizon Climbs 4% After Warren Buffett Reveals Nearly $9 Billion Investment
Image credit: James Lawler Duggan/Reuters via BI

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
2 min read
This story originally appeared on Business Insider

Verizon gained as much as 3.8% on Wednesday after Warren Buffett's Berkshire Hathaway unveiled a multibillion-dollar stake in the telecom giant.

The conglomerate revealed it added 147 million of Verizon's shares to its holdings in the quarter that ended December 31, according to a 13-F filing published Tuesday. The purchase amounted to roughly $8.6 billion in stock.

Buffett also took a $4.1 billion stake in Chevron and established a $500 million investment in professional-services firm Marsh & McLennan through the December quarter.

Berkshire won regulatory approval to keep its three new investments private in its third quarter 13-F filing after arguing it wasn't yet done building the positions. New investments by the holding company tend to drive share prices higher, as a bullish outlook from Buffett often attracts new investors.

Elsewhere in Berkshire's portfolio, the firm trimmed its stakes in Apple and Wells Fargo. It fully exited its positions in JPMorganPNC, and M&T. Buffett boosted the company's investments in AbbVieMerck, and T-Mobile, among others.

Apple remains Berkshire's biggest single investment. The firm owned roughly 908 million shares at the end of last year. The stake's value accounts for about 44% of its entire $270 billion stock portfolio.

The new bets on Verizon and Chevron highlight Buffett's confidence in more traditional sectors to recover from the coronavirus pandemic. The legendary investor was optimistic the start of the health crisis, telling investors they should "never, ever bet against America." While tech giants led the stock market's initial rebound, investors have since rotated cash to value and small-cap stocks in hopes that vaccinations and new stimulus can supercharge an economic rebound.

Verizon closed at $54.15 on Tuesday, down roughly 7% year-to-date. The company has six "buy" ratings and 11 "hold" ratings from analysts.

More from Entrepreneur

Our Franchise Advisors will guide you through the entire franchising process, for FREE!
  1. Book a one-on-one session with a Franchise Advisor
  2. Take a survey about your needs & goals
  3. Find your ideal franchise
  4. Learn about that franchise
  5. Meet the franchisor
  6. Receive the best business resources
Entrepreneur Insider members enjoy exclusive access to business resources for just $5/mo:
  • Premium articles, videos, and webinars
  • An ad-free experience
  • A weekly newsletter
  • Bonus: A FREE 1-year Entrepreneur magazine subscription delivered directly to you
Try a risk-free trial of Entrepreneur’s BIZ PLANNING PLUS powered by LivePlan for 60 days:
  • Get step-by-step guidance for writing your plan
  • Gain inspiration from 500+ sample plans
  • Utilize business and legal templates
  • And much more

Latest on Entrepreneur