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The Reformed Broker

Berkshire Hathaway sells Intel stock, nets $60 million

Warren Buffet's firm deviates from its usual buy-and-hold strategy to sell its Intel stocks a year after buying them, Brown writes.

By Guest blogger / September 14, 2012

Billionaire investor Warren Buffet is pictured at the Allen & Company Sun Valley Conference in Sun Valley, Idaho in this July 2012 file photo. Buffet's strategy is typically to buy and hold stocks, Brown writes.

Paul Sakuma/AP/File

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Berkshire's got a brand new bag.  You've almost never seen Warren's company buy a stock and then blow it out a year later.  Berkshire's corporate culture is and has always been buy and hold; Buffett tries to own things he would never want to sell.

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Joshua has been managing money for high net worth clients, charitable foundations, corporations and retirement plans for more than a decade.

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But there's some new blood at the company.  Todd Combs was brought in followed by Ted Weschler to take the reins on the investment portfolio, and I highly doubt Buffett and Munger hired them with an expectation that they'd do things a different way.

New blood is good sometimes.

As a shareholder myself and an adviser with virtually all of my clients in the stock, it's really interesting to watch this whole thing evolve...

From Bloomberg:

Berkshire Hathaway Inc. (BRK/A) locked in a gain on its Intel Corp. (INTC) bet by selling its stake less than a year after making the investment, shunning the buy-and-hold strategy favored by Chairman Warren Buffett.

Berkshire’s Geico unit accumulated 11.5 million shares of Santa Clara, California-based Intel in the second half of 2011 for an average price of about $22 each, according to National Association of Insurance Commissioners data compiled by Bloomberg. Buffett’s firm sold the stake in the world’s largest semiconductor maker for an average price of $27.25 this year through May 8, netting about $60 million in profit.

Source: Berkshire Posts 25% Intel Gain by Shunning Buy-and-Hold (Bloomberg)

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