REUTERS
- Warren Buffett made $ 17 billion in profit in just five shares this year.
- Bank of America’s stake in Berkshire Hathaway rose $ 9 billion.
- Buffett raised more than $ 1 billion on Kraft Heinz, GM and US Bancorp in 2021.
- See more stories on Insider’s business page.
Warren Buffett wins much of the flight to value stocks before the world economy reopens this summer. The famous investor, the Berkshire Hathaway conglomerate, made an astonishing $ 17 billion profit in just five shares this year.
Buffett’s company raised only $ 9 billion. The bank group’s share price has risen 30% since the beginning of January, increasing the value of Berkshire’s increased stake from $ 30 billion to $ 39 billion.
In addition, Berkshire made a profit of $ 3.7 billion on American Express, as the share of the financial services group rose by 30% this year. It earned $ 1.5 billion on Kraft Heinz, $ 1.4 billion on General Motors and $ 1.3 billion on US Bancorp in less than three months.
Buffett’s commitment to five Japanese trading houses last fall is also paying off. The shares of Itochu, Mitsui, Marubeni, Mitsubishi and Sumitomo rose by an average of 26% this year, increasing the combined value of Berkshire’s holdings by $ 1.6 billion.
Other Berkshire investments are also performing better. Chevron, Suncor Energy and Synchrony Financial have already climbed more than 20% this year, while Wells Fargo – previously one of Berkshire’s largest shares – has risen by 37%. Meanwhile, the standard S&P 500 index is up 5.8% this year.
However, Berkshire’s profit is partially offset by the recent exit from technology stocks. Apple – which makes up more than 40% of Buffett’s US equity portfolio – fell 7% this year. The drop wiped out nearly $ 8 billion from the value of Berkshire’s stake.
Berkshire also hit a Coca-Cola hit, leaving its shares about $ 900 million lower today than at the beginning of January. The company also invested approximately $ 400 million in Snowflake and Verizon.
Buffett’s distinctive approach to snooping on high-quality undervalued businesses and investing for the long term ultimately pays off. But if growth stocks start to rise again, its Apple commitment is likely to thrive. It seems Buffett has found a way to eat his cake and eat it too.