Berkshire Hathaway, the company conglomerate led by Warren Buffett, posted a sharp rebound in earnings on Saturday, part of which came from its equity portfolio. So far this year, Berkshire shares have already accumulated a 23% rally .
However, about 70% of Berkshire’s portfolio is concentrated in just four companies . Among the companies most trusted by the “Oracle of Omaha” is Apple , which at the end of the second quarter of the year was still the largest investment in Berkshire common stock, with a market value of 124.3 billion dollars .
The giant stake in the iPhone maker played a key role in helping the conglomerate weather the pandemic, as other pillars of its business, such as insurance and energy, took a major hit, according to CNBC.
The tech giant’s shares have gained 10% this year , after racking up an 80% return in 2020, as investors flocked to megacap growth stocks that benefited from last year’s lockdowns.
Berkshire also held large stakes at the end of June in American Express (worth about $ 25.1 billion) and Bank of America ($ 42.6 billion) at the end of June. Apart from these two values, the conglomerate has reduced its exposure to the financial sector. Berkshire exited its positions at JPMorgan Chase and PNC Financial late last year, while slashing its stake in Wells Fargo .
The value of his investment in Coca-Cola , Buffett’s old bet, had a capitalization of $ 21.6 billion at the end of the second quarter. However, the consumer giant continued to underperform the broader market, with shares rising just 3% so far this year after posting a flat year in 2020.
Berkshire posted an operating profit of $ 6.69 billion in the second quarter, up 21% from $ 5.51 billion in the same period last year. Global earnings, reflecting Berkshire’s equity investments, rose 6.8% year-on-year to $ 28 billion in the second quarter.
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