Warren Buffett sold 11 shares in Q2. But 3 of them are up over 30% since then.

Warren Buffett said in his 2021 letter to Berkshire Hathaway shareholders, “I make a lot of mistakes.” Like any investor, sometimes he failed to buy stocks that he later wanted to have. He also sold shares when he probably should have kept them.

We may have some recent examples of the latter type of error. Buffett sold 11 stocks in the second quarter of 2024. However, three of them are up more than 30% since the end of the second quarter.

1. Liberty Live Group Serie A

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

Buffett reduced Berkshire’s stake in two of Liberty Media’s remaining shares. One was Liberty Live Group Serie A (NASDAQ: LLYV.A). Liberty Live Group is a Liberty Media tracking stock that includes Liberty Media’s interest in Live Nation Entertainmentthe world’s largest live entertainment company.

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

2. Liberty Live Group Serie C

Liberty Live Serie C Group (NASDAQ: LLYV.K) is another Buffett stock sold in Q2 that has picked up steam in recent months. Unsurprisingly, the stock moves in step with its sibling, the 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 the second quarter, the stock is up 34%. However, Berkshire still enjoyed gains, with about 10.92 million shares of Liberty Live Group Series C remaining in the portfolio.

3. Louisiana-Pacific

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

In Q2, Buffett sold more than 633,000 shares representing 9.6% of Berkshire’s stake in Louisiana-Pacific. Since the end of the second quarter, the stock is up 31%.

However, Buffett has not thrown in the towel on Louisiana-Pacific. Berkshire’s portfolio also includes about 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 sleep over selling any of these three stocks before they break even after the end of the second quarter. However, if he has any regrets going forward, I suspect it may have to do with reducing Berkshire’s stake in Louisiana-Pacific.

The story continues

First, Berkshire sold a larger percentage of its position in Louisiana-Pacific than it did in any of Liberty Live Group’s 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 that it will cut 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 home building. As more new homes are built, demand for the company’s engineered wood products should increase.

Louisiana-Pacific’s fortunes could also improve depending on the outcome of the November election. Vice President Kamala Harris has proposed more stimulus 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 push her agenda, stocks like Louisiana-Pacific should to 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 put on Live Nation Entertainment. The Motley Fool has a disclosure policy.

Warren Buffett sold 11 shares in Q2. But 3 of them are up over 30% since then. was originally published by The Motley Fool