Warren Buffett’s Berkshire Hathaway acquired nearly US$1-billion (R15-billion) of shares in Activision Blizzard before Microsoft agreed to buy the videogame maker for US$68.7-billion, according to a Monday regulatory filing.

Berkshire said that as of 31 December, it owned 14.7 million shares worth about $975-million of the Call of Duty maker. Microsoft announced its plan to buy Activision Blizzard on 18 January, in its largest ever acquisition.

Activision shares are up 23% this year to $81.50, though they remain well below the proposed $95/share takeover price, reflecting potential antitrust concerns.

Berkshire disclosed its Activision stake in a filing detailing its US-listed stock investments as of 31 December. Investors monitor Berkshire’s investments closely to see where Buffett and his investment managers Todd Combs and Ted Weschler see value. The filings do not say who bought and sold what, though Buffett generally handles larger investments.

Other media have quoted Buffett, a longtime friend of Microsoft co-founder Bill Gates, as saying he would not buy Microsoft shares because of potential conflicts of interest. Gates ended his 16-year run on Berkshire’s board in 2020. Buffett had been a trustee of the Bill and Melinda Gates Foundation but resigned in 2021.

Record cash

In the fourth quarter, Berkshire also added to its stake in oil company Chevron, while reducing its holdings in health-care companies including Bristol-Myers Squibb and Abbvie. Apple remains Berkshire’s largest common stock holding.

Stock sales and Buffett’s six-year drought in buying large whole companies have contributed to Berkshire’s record $149.2-billion cash stake as of 30 September 2021, despite at least $21.9-billion of stock buybacks that year.

Berkshire is expected to disclose more about its stock purchases, buybacks and cash on 26 February when it releases year-end results and Buffett’s widely read annual shareholder letter. — David Randall, Svea Herbst-Bayliss and Jonathan Stempel, with Megan Davies, (c) 2022 Reuters