Berkshire invests in Capital One, sheds four stocks

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Berkshire Hathaway Inc on Monday disclosed it has begun investing in Capital One Financial Corp while exiting investments in four other stocks, as the company run by Warren Buffett cut back its exposure to equities.

"Trust banks such as BNY Mellon have seen deposit pressures mounting as the [U.S. Federal Reserve shifts] to quantitative tapering," said David Smith, an analyst at Autonomous Research.

In contrast, high-yielding assets for credit card specialists such as Capital One position them better to absorb increased funding costs and avoid liquidity concerns, he added. Berkshire also has dozens of operating businesses including the BNSF railroad, Geico car insurance, and many energy, manufacturing and consumer units.

Buffett shed what remained of the TSMC stake six months after surprising investors by revealing a $4.1 billion investment. He told investors this month he had reevaluated the risks of investing in Taiwan, on growing concern China might soon invade or try to reclaim the island nation.

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