During the liquidation of the stock market in New York (USA) on Monday, Warren Buffett would have lost about 6,000 million dollars due to the fall of the shares of four companies, according to estimates of Market Insider.
Some of the most important holdings of Berkshire Hathaway, the multinational chaired by Buffet, are shares of Apple, Bank of America, American Express and Coca-Cola. At the beginning of the week, the shares of these companies fell between 1% and 4%, reducing the combined value of the famous investor’s stakes in those companies by $ 5.9 billion.
However, the outlet points out that Buffett is probably not very concerned about it because the model of his investments focuses on long-term results.
The veteran entrepreneur is concentrating his money on a few key investments instead of spreading it across hundreds of companies, increasing his profits when his bets pay off, but also putting the investment at greater risk when stocks fall.
Apple has accounted for 45% of Berkshire’s total portfolio in recent weeks, with the conglomerate’s top five holdings accounting for 75%.
The billionaire has already made a fortune from these stocks. For example, Berkshire Hathaway spent $ 36 billion to buy a stake in Apple, which is now valued at $ 126 billion. In other words, your investment has tripled.
The investment company also spent $ 1.3 billion buying Coca-Cola shares, which are now worth $ 22 billion. Additionally, its $ 25 billion stake in American Express has a cost base of $ 1.3 billion. Meanwhile, the $ 15 billion spent to acquire Bank of America shares has resulted in a $ 37 billion stake today.
Overall, Buffett’s total unrealized earnings on these four stocks exceed 150,000 million dollars, more than the market capitalization of Starbucks ($ 136 billion), IBM ($ 123 billion) or Goldman Sachs ($ 120 billion).