Berkshire Hathaway Inc (BRKa.N) said on Monday it has taken a $943 million stake in insurance brokerage Aon Plc (AON.N) and sold large portions of its investments in Chevron Corp (CVX.N) and Wells Fargo & Co (WFC.N).
The changes were disclosed in a regulatory filing detailing Berkshire’s U.S.-listed holdings as of March 31.
Berkshire also shed two smaller holdings entirely, Canada’s Suncor Energy Inc (SU.TO) and private label credit card issuer Synchrony Financial Inc (SYF.N).
The sales suggest that Buffett and his investment managers Todd Combs and Ted Weschler may be growing more wary of valuations as stocks regularly set new highs.
Berkshire sold $6.45 billion of equities and bought just $2.57 billion in the quarter. It ended March with a near-record $145.4 billion of cash and equivalents.
Buffett is “likely shoring up reserves” for a major acquisition, said Doug Kass, a principal at Seabreeze Partners Management LLC in Palm Beach, Florida. “He is clearly in no rush and is sitting on his hands, awaiting the right pitch.”
At Berkshire’s May 1 annual meeting, Buffett said his Omaha, Nebraska-based company would like to spend $70 billion or $80 billion, but would probably not get a chance until the market offered better values.