And that brings us to today. Yesterday, Berkshire filed its 10F report for the quarter ending 31 March 2021. Although that's a while ago now (and an eternity in the investing world), it's still a great opportunity to get a look inside Buffett's head and see what he's been up to.

So let's dig in.

Buffett's buys

So according to reporting in the Australian Financial Review (AFR), Berkshire did make some substantial moves over the March quarter. These were mostly selling though. His largest sells were in bank shares, particularly Wells Fargo & Co (NYSE: WFC), which the AFR notes Buffett has held for more than three decades now. At the height of Berkshire's Wells Fargo investment, the company owned more than 10% of the US$198 billion bank. But as of 31 march, Berkshire only owned ~675,000 shares, worth roughly US$32.34 million on the most recent pricing.

Berkshire also offloaded shares of another US bank in U.S. Bancorp (NYSE: USB), as well as a smaller, but total, stake in Synchrony Financial (NYSE: SYF).

Another sector that Berkshire and Buffett seem less enamoured with than in the past is oil. In the quarter ending 31 December 2020, Berkshire has a US$4.1 billion position in the oil giant Chevron Corporation (NYSE: CVX). But Berkshire has been selling off this position as well. As of 31 March, Berkshire had just US$2.5 billion worth of Chevron stock left. Perhaps the recent bull run in oil prices has served its purpose for Buffett.

Other shares that Buffett and Berkshire trimmed over the quarter include AbbVie Inc (NYSE: ABBV), Bristol-Myers Squibb Co (NYSE: BMY), Merck & Co., Inc. (NYSE: MRK) and General Motors Company (NYSE: GM).

In their place, Berkshire has added to its stake in supermarket chain Kroger Co (NYSE: KR), almost doubling its investment over the quarter to 51 million shares (worth US$1.91 billion on today's prices). It has also topped up on communications giant Verizon Communications Inc. (NYSE: VZ), and services company Marsh & McLennan Companies, Inc. (NYSE: MMC). It also initiated a position in insurance broker Aon PLC (NYSE: AON).

Berkshire's stakes in its largest holdings in Apple Inc (NASDAQ: AAPL) and Bank of America Corp (NYSE: BAC) remain unchanged for the quarter.

The post Here are the shares that Warren Buffett has been buying (and selling) lately appeared first on The Motley Fool Australia.

About the new CEO

Investors appear unfazed by the company's latest update, leaving the SelfWealth share price unchanged in morning trade.

According to this morning's release, SelfWealth has appointed Cath Whitaker as its new CEO, effective 20 April 2021.

The company highlighted that Ms Whitaker has more than 20 years of experience in global financial services. In her most recent role, Ms Whitaker held the position of global leader of digital transformation at Marsh Inc. This saw Ms Whitaker oversee the development and implementation of Marsh's digital and data strategy for risk management and corporate divisions.

Marsh Inc. is a wholly-owned subsidiary of international professional services firm, Marsh McLennan Companies Inc (NYSE: MMC). The parent company was founded in 1871 and is headquartered in New York. The group has an annual revenue turnover of $17 billion.

SelfWealth selected Ms Whitaker to lead its next growth phrase, after a successful 24 months. The company is focused on delivering ongoing product innovation, and digital best practices.

SelfWealth managing director Rob Edgley commented:

Our current team, together with founder and former CEO Andrew Ward, have done a fantastic job in building a fast-growing business with a trusted brand, an engaged community of traders and an innovative product offering.

We are delighted to welcome Cath as the new CEO of SelfWealth. Her impressive track record in implementing global digital transformation programs is completely aligned with the growth strategy of SelfWealth.

SelfWealth share price summary

Over the past 12 months, the SelfWealth share price has gained over 500%, and is up around 7% year to date.

On valuation grounds, SelfWealth commands a market capitalisation of roughly $124.2 million, with 205.3 million shares outstanding.

The post SelfWealth (ASX:SWF) share price flat despite new CEO appeared first on The Motley Fool Australia.

Back in the 1950s, ESG went by the acronym SRI, which stands for socially responsible investing. It was born from investors' desires not to support so-called sin shares. Mainly companies involved in alcohol, tobacco, gambling, or…gasp…adult entertainment.

In more recent years, as concerns have mounted over global pollution and large-scale environmental damage, the environmental angle has played a growing role, with energy shares increasingly finding themselves on the ESG blacklist.

But despite a sizeable basket of shares that are off limits, inflows into ESG themed exchange-traded funds (ETFs) are at record levels. According to data from Bloomberg, inflows in 2020 by late October had hit US$22 billion (A$30 billion). That's already 3 times the total inflows for 2019.

Finance issues

Not only is money pouring into ESG shares, companies that are seen to be doing the wrong thing are finding it increasingly difficult to secure financing.

Bank of America Corp (NYSE: BAC), under pressure from activist groups, had made it clear it won't be financing any oil and gas exploration projects in the Arctic.

As Bloomberg reports:

Bank of America has said it aims to position itself as a leader in environmental, social and governance matters in the financial industry through underwriting green bonds, reducing carbon emissions and supporting global climate initiatives. It has a goal of achieving net-zero emissions by 2050.

Aussie energy giant, Santos Ltd (ASX: STO), has no plans to drill in the Arctic. But the company is putting itself at the forefront of carbon reduction battle.

This morning Santos announced ambitious new emissions reduction targets.

Kevin Gallagher, Santos managing director, says the company is already on track to exceed its 2025 emission targets and will achieve net-zero emissions by 2040. Gallagher notes that, "The world still relies on hydrocarbon fuels for 80 per cent of its primary energy, the same as 45 years ago."

With that caveat in mind he adds:

Our focus over the last three years on step change technologies such as carbon capture and storage has enabled a pathway that allows us to go further faster when it comes to emissions reduction…

Carbon-neutral LNG cargoes are already in demand in Asia and customer countries such as China, Japan and Korea are aspiring to net-zero emissions around the middle of the century.

This will require increased use of natural gas to replace coal as well as new clean fuels such as hydrogen, already being used to reduce emissions from coal-fired power generation in Asia.

Our existing LNG customer base in Asia will be the hydrogen customers of the future, and as technology evolves and they transition to new clean fuels, Santos will transition with them.

Show me the money

Now many ESG investors remain motivated by the concept that they're doing the right thing. And they sleep better knowing that their money is invested in supposedly responsible shares.

(I say 'supposedly' here because there's the issue of greenwashing. That's where a company paints itself as far more responsible than it is. An issue that's exacerbated by the fact many ESG ratings still depend on a company's own sustainability reports. But that's a story for another day.)

But ever more investors are turning to ESG shares not to soothe their own conscience but to chase bigger gains. In fact, Nuveen's Fifth Annual Responsible Investing Survey, revealed that 53% of investors said they opted for responsible investments for better performance. That's the first time a majority of investors named performance as their main motivator in the survey's history.

Commenting on the results, Amy O'Brien, global head of responsible investing at Nuveen said, "Investors increasingly understand that promoting positive outcomes on important ESG issues, not only minimizes portfolio risks, it actually leads to improved performance overall."

Nuveen's survey results support the latest research from Mercer, a global leader in responsible investment advice and solutions, and a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC).

According to Mercer, the best sustainable investment strategies in Australian shares returned 10.4% annually over the last 3 years through to June 2020. Over that same time, the median actively managed Aussie equities fund returned 5.3%, while the S&P/ASX 300 (INDEXASX: XKO) returned 5.2%.

Paul Xiradis, Ausbil's chief investment officer, agrees that shares with a strong ESG focus can improve overall risk-adjusted returns. In a research report published by investment manager Ausbil yesterday, Paul said:

One positive thing that has come out of the pandemic is a sharper focus and demand for ESG and sustainable investment approaches. COVID-19 has accelerated changes in work-from-home, transport, travel, education and shopping behaviours that have significant implications and potential for sustainable approaches to investing, and the integration of ESG, as we do, across all investment strategies.

Sectors and companies with high proprietary ESG ratings based on Ausbil's extensive modelling, and demonstrating strong forward ESG momentum across any thematic, offer returns with a broader consideration of risks, improving overall risk-adjusted returns. This includes sectors such as technology, healthcare, renewable energy, electric vehicle and battery-linked metals, select leaders in consumer staples and consumer discretionary, high-quality industrials, and transition energy, amongst others.

This ASX share is riding the ESG growth trend

One ASX share that's captured the rapid growth in ESG investing is Australian Ethical Investment Limited (ASX: AEF).

Australian Ethical is an Australian wealth management company that invests according to its own strict ethical charter.

Despite getting smashed by the pandemic-fuelled market selloff earlier this year, with the share price plummeting 60%, Australian Ethical's share price is up 29% year-to-date.

The Motley Fool's own Scott Phillips recommended Australian Ethical to his members of Share Advisor on 24 October 2019.

Scott listed Australian Ethical's strong growth in funds under management, the fact that it had successfully launched into superannuation, and its highly scalable business as reasons to buy.

He also noted that he's previously questioned elements of ethical investing and is "largely neutral on the efficacy of the underlying idea". However, Scott wrote:

Whatever your thoughts are on the concept of 'ethical investing', there is no question that it is an increasingly popular trend; and with more than twenty years' experience, Australian Ethical is arguably the king of the hill.

The Australian Ethical share price is up 82% since Scott's recommendation. And in case you're wondering, Scott maintains a 'buy' rating on the shares.

The post How this ASX share is riding the rapid growth of ESG investing appeared first on The Motley Fool Australia.

And for good reason.

Incorporating ESG into your investment considerations not only puts your money to work in more responsible ways, it can also see your returns given a healthy boost.

That's according to the latest research from Mercer, a global leader in responsible investment advice and solutions, and a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC).

Mercer's research revealed that the best sustainable investment strategies in Australian shares returned 10.4% annually over the last 3 years through to June 2020. Over that same time, the median actively managed Aussie equities fund returned 5.3%, while the S&P/ASX 300 Index (ASX: XKO) returned 5.2%.

In other words, the ESG strategy roughly doubled the annual returns.

100% ESG in 2 years

That potential boost in returns will surely come as good news to the philanthropic Myer Foundation. The Myer Foundation, established in 1959, aims to achieve a 100% ESG investment portfolio by November 2022.

The Foundation set the ambitious goal last November. And in March this year it commissioned Mercer's Responsible Investment business to help restructure its portfolio.

Martyn Myer, who led the transition and stepped down as president earlier this month after 11 years in the role said:

Shared Value posits that corporate success and improved social and environmental conditions are in fact inherently linked – and when achieved together, they can dramatically enhance future prosperity.

The SDGs [United Nation's Sustainable Development Goals] provide a clear pathway to address social, economic and environmental challenges and with 193 nations committed to achieving them, it signals broad global consensus, creating a powerful economic tailwind for aligned companies.

Helga Birgden, Partner, Global Business Leader of Mercer's Responsible Investment remarked:

Through this project, Mercer has worked with The Myer Foundation to identify the best investment managers globally that we expect to deliver strong investment returns while contributing to solutions to sustainability challenges and a positive impact on the environment and local communities.

While not all responsible investment or ESG funds will outperform over all periods, as long-term investors focused both on returns and truly sustainable investment solutions, rigorous investment and operational due diligence is critical for manager selection.

Myer added that the Myer Foundation is now in a position to help change the attitude that companies need to choose between delivering competitive returns to shareholders and doing good.

As Mercer's latest research reveals, they can do both.

The post Why the Myer Foundation aims to achieve 100% ESG investments in 2 years appeared first on The Motley Fool Australia.