Warren Buffett’s firm trims stakes in drug makers, finance companies

The conglomerate based in Omaha, Nebraska, said its newest holdings included $475 million worth of shares of Royalty Pharma RPRX, +0.70%, which invests in drug development and then collects royalties on the prescription drugs, and another $100 million worth of specialty flooring retailer Floor & Decor Holdings stock FND, +6.01%.

Besides those two new investments and a move to increase its stake in Chevron CVX, +0.40%, all of Berkshire’s other moves in the quarter reduced its investments in an assortment of companies. But Buffett didn’t make any changes to Berkshire’s biggest investments in Apple AAPL, +0.67% and Bank of America BAC, +0.06% stock.

Buffett and other Berkshire officials don’t comment on these quarterly stock filings, and the reports don’t make it clear whether either of the company’s two other investment managers had a hand in the moves. Buffett generally handles all the bigger investments in Berkshire’s portfolio that are worth more than $1 billion apiece such as longstanding holdings in Coca-Cola KO, -0.71% and American Express AXP, -1.21% stock.

With Chevron, Berkshire bought nearly 5.6 million shares to rebuild part of the investment it had been selling off in the first half of this year, but Berkshire’s current $2.9 billion investment in the oil giant is still smaller than the $4.1 billion Chevron stake it established late last year.

During the third quarter, Berkshire sold off its investments in Merck MRK, +0.50% and its spinoff Organon & Co. OGN, +0.48%. It also reduced its stakes in drug makers Abbvie ABBV, -0.36% and Bristol-Myers Squibb BMY, -0.87%. But it maintained its roughly $400 million investment in Teva Pharmaceuticals TEVA, -1.48%.

Berkshire also scaled back its investments in Visa V, +1.36% and Mastercard MA, +2.27% and trimmed its US Bancorp USB, +0.10% stake during the quarter.

Besides investments, Berkshire owns more than 90 companies outright, including BNSF railroad, Geico insurance and several major utilities. The conglomerate also owns manufacturing, furniture, shoe, jewelry, chocolate, underwear and brick companies.