Warren Buffett Sold 11 Stocks in Q2. But 3 of Them Have Soared Over 30% Since Then.

Source The Motley Fool

Warren Buffett said in his 2021 letter to Berkshire Hathaway shareholders, "I make many mistakes." Like any investor, he has sometimes failed to buy stocks he later wished he had. He has also sold stocks when he should have probably held onto them.

We could have some recent examples of the latter type of error. Buffett sold 11 stocks in the second quarter of 2024. However, three of them have soared over 30% since the end of Q2.

1. Liberty Live Group Series A

Berkshire Hathaway's portfolio includes five stocks associated with Liberty Media. The number stood at seven before the merger of Liberty SiriusXM Group (which had two classes of shares owned by Berkshire) with Sirius XM Holdings.

Buffett trimmed Berkshire's stakes in two of the remaining Liberty Media stocks. One was Liberty Live Group Series A (NASDAQ: LLYV.A). Liberty Live Group is a tracking stock of Liberty Media that includes Liberty Media's interest in Live Nation Entertainment, the world's leading live entertainment company.

In Q2, Berkshire reduced its position in Liberty Live Group Series A by 1.29%. It still owns 4.99 million shares worth roughly $247.4 million. Buffett would have been better off not selling, though. Since the end of the second quarter, Liberty Live Group Series A shares have risen 32%.

2. Liberty Live Group Series C

Liberty Live Group Series C (NASDAQ: LLYV.K) is another stock Buffett sold in Q2 that has taken off in recent months. Unsurprisingly, the stock moves in lockstep with its sibling, Liberty Live Group Series A.

Buffett sold 1.93% of Berkshire's stake in Liberty Live Group Series C in the second quarter. Since the end of Q2, the stock has jumped 34%. However, Berkshire still benefited from the gains with around 10.92 million shares of Liberty Live Group Series C remaining in its portfolio.

3. Louisiana-Pacific

Berkshire first initiated a position in Louisiana-Pacific (NYSE: LPX) in the third quarter of 2022. Louisiana-Pacific is a top provider of high-performance building solutions, including engineered wood siding.

In Q2, Buffett sold over 633,000 shares representing 9.6% of Berkshire's stake in Louisiana-Pacific. Since the end of the second quarter, the stock has vaulted 31% higher.

However, Buffett hasn't thrown in the towel on Louisiana-Pacific. Berkshire's portfolio still includes around 5.96 million shares of the building materials company valued at nearly $645.5 million.

Which of these sales might Buffett regret the most?

I doubt Buffett will lose any sleep over selling any of these three stocks before they took off following the end of Q2. However, if he does have regrets down the road, I suspect they could be related to reducing Berkshire's stake in Louisiana-Pacific.

For one thing, Berkshire sold a greater percentage of its position in Louisiana-Pacific than it did with either of the Liberty Live Group stocks. More importantly, though, Louisiana-Pacific now has a key catalyst that could continue to drive its share price higher next year -- interest rate cuts.

The Federal Reserve recently announced it was reducing interest rates by 0.5%. It indicated that further, albeit smaller, rate cuts could be on the way. This is great news for Louisiana-Pacific because lower interest rates correlate with lower mortgage rates. Lower mortgage rates should spur more homebuilding. As more new homes are built, the demand for the company's engineered wood products should grow.

Louisiana-Pacific's fortunes could also improve depending on the outcome of the November elections. Vice President Kamala Harris has proposed several incentives that could boost the number of new homes built in the U.S. If she wins the presidency and Democrats secure enough seats in Congress to help her pass her agenda, building product stocks such as Louisiana-Pacific should enjoy even more momentum.

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Keith Speights has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Live Nation Entertainment and recommends the following options: short October 2024 $90 puts on Live Nation Entertainment. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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