Warren Buffett's Berkshire Hathaway moves in the 2nd quarter reflect 'caution in the current environment,' Morgan Stanley says

• Warren Buffett's Berkshire Hathaway equity portfolio value increased about 15% in the second quarter, according to a Monday note by Morgan Stanley.
• The company's new position in Barrick Gold is "potentially signaling caution given the uncertain macro environment," said analysts led by Michael Phillips.
• In addition, "the company has largely reinvested the proceeds from equity sales in Treasury bills, reflecting caution in the current environment," said Phillips.
• Read more on Business Insider.

The stock moves that Warren Buffett's Berkshire Hathaway made in the second quarter don't suggest that the company has a lot of confidence in the current market.

For example, the company's new position in Barrick Gold could signal hesitancy, Morgan Stanley analysts led by Michael Phillips wrote in a Monday note.

The roughly $564 million investment Berkshire made in the gold and copper miner is "potentially signaling caution given the uncertain macro environment," said Phillips. Gold is traditionally a safe-haven asset, and the precious metal's price has skyrocketed this year as investors flock to safety amid the coronavirus pandemic.

On the flip side, what the company sold could also reflect caution. Berkshire Hathaway exited positions in big banks including JPMorgan and Goldman Sachs in the second quarter, "indicating bearishness on financials in an uncertain macro environment," according to the note.

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It also exited its stake in Restaurant Brands International, the parent company of Chipotle, Burger King, and Tim Hortons.

The reasons for the exit from the restaurant company "could follow the same line of thinking as the airlines, given pressure on the restaurant industry from the pandemic," Phillips wrote in the note. Buffett signaled that he'd dumped airlines earlier in the year, saying the position in them was a mistake.

Even the way Berkshire has used the proceeds from its portfolio growth may signal a lack of confidence in the current backdrop, according to Morgan Stanley.

The total value of Berkshire Hathaway's equity portfolio increased 15% in the second quarter to $192 billion, excluding the company's position in Kraft Heinz, according to the note.

"The company has largely reinvested the proceeds from equity sales in Treasury Bills, reflecting caution in the current environment," said Phillips.