Source: Sina Finance
Warren Buffett’s six biggest holdings may have lost more than $13 billion in Wednesday’s rout, according to estimates.
Buffett’s Berkshire Hathaway’s holdings of Apple shares lost $7.5 billion in value, and Apple’s shares fell nearly 6% on the day; its Coca-Cola shares lost $1.8 billion in value, and the stock fell 7% on the day.
Berkshire’s positions in American Express, Bank of America, Kraft Heinz and Chevron have shrunk by a combined $4.1 billion, down between 2.6% and 9.5% on Wednesday. Overall, Berkshire’s six largest holdings lost a combined $13.4 billion in one day.
The calculations are based on Berkshire’s newly disclosed holdings and assume Buffett and his team have not adjusted their holdings since March 31. It’s also worth emphasizing that unless Berkshire sells its stock at a lower price, these are just unrealized paper losses.
The battle-hardened Buffett isn’t too concerned about shrinking his portfolio because he’s known for his long-term investments and welcomes buying opportunities in downturns. Furthermore, Berkshire is still making big money on its core holdings: It has tripled its investments in Apple, more than doubled its investments in Bank of America, and has also made 17x its investments in American Express and Coca-Cola. ‘s earnings.
Berkshire’s Chevron stake more than tripled in the first quarter of this year, while the energy stock surged 39% over the same period, boosting the value of Buffett’s holding from $4.5 billion to nearly $26 billion. However, without knowing the entry point, it is difficult to estimate his exact gain on this position.
Kraft Heinz is the only one holding back: Buffett admits he overpaid for a stake in the food and condiment conglomerate, which is now worth less than what he paid.
Even if the hit to Berkshire’s holdings doesn’t last long, Wednesday’s decline underscores the high concentration of the company’s portfolio. Berkshire’s top six holdings were valued at $289 billion as of March 31, or 80% of its $364 billion U.S. equity portfolio.
edit/ping
This article is reprinted from: https://news.futunn.com/post/15715354?src=3&report_type=market&report_id=206159&futusource=news_headline_list
This site is for inclusion only, and the copyright belongs to the original author.