Charlie Munger Reduces Stake in Posco

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Feb 09, 2015
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About two months ago, Barron’s reported that Warren Buffett (Trades, Portfolio) thought stock in Posco (PKX, Financial), one of the world’s top five steelmakers, was “cheap.” Buffett, Barron’s observed, had been investing in PKX since 2007 and held a 5% stake in the South Korean steel company at that time.

But Posco struggled in 2014, Zacks Equity Research reported last week, with weak earnings in the fourth quarter. For the year, its earnings were down nearly 59%. Today, PKX is nowhere to be found in Berkshire Hathaway’s portfolio.

By the end of the fourth quarter of 2014, Buffett’s partner, Charlie Munger (Trades, Portfolio), had reduced his stake in the company as well. It was the only movement in his portfolio in the fourth quarter, and it had a -3.14% impact. Only three other companies are in Munger’s portfolio – Wells Fargo & Co (WFC, Financial), Bank of America Corporation (BAC, Financial) and U.S. Bancorp (USB, Financial).

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In the fourth quarter of 2014, guru Arnold Van Den Berg (Trades, Portfolio) sold his stake in PKX for an average price of $69.1 per share. Guru Martin Whitman (Trades, Portfolio) sold nearly 21% of his stake in PKX for between $69.81 and $86.93 per share, having a 0.99% impact on his portfolio.

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In the first two quarters of 2014, guru Charles Brandes (Trades, Portfolio) bought more than 172,000 shares of PKX for between $68.69 and $72.89 per share. In the third quarter, he sold 47,874 shares for an average price of $79.95.

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