Warren Buffett’s Berkshire Hathaway has beaten the benchmark S&P 500 so far this year.
Warren Buffett’s Berkshire Hathaway has beaten the benchmark S&P 500 so far this year. Berkshire Hathaway’s Class B shares jumped nearly 7% and Class A shares nearly 5% in the first two months of 2022. By comparison, the S&P 500 index fell 8.81 %. Over the long term, Warren Buffett’s company has earned an average annual return of 20.1% since 1965, according to Berkshire Hathaway’s 2021 shareholder letter. The benchmark S&P 500 index has generated an annualized total return, dividends inclusive, by 10.5% over the same 56 years.
Warren Buffett’s Berkshire Hathaway has the largest stakes in four stocks – Apple, Bank of America, American Express Company and The Coca-Cola Company (as of end-December 2021). In the first two months of the current year 2022 (year-to-date), Buffett’s portfolio stock prices have climbed as much as 21%. Of the 10 largest holdings, only three stocks have generated positive returns so far this year: American Express, Coca Cola and Chevron Corporation.
Apple (down 9.3%)
By market value, Berkshire Hathaway has the largest stake in Apple. Warren Buffett owned 907.5 million shares of Apple or 5.6% of the capital in December 2021 for a total market value of $161.1 billion. So far this calendar year 2022, Apple shares have plunged 9.3% to $165.12 from $182.01 on Jan. 3, 2022. According to Berkshire Hathaway’s 2021 letter to shareholders, the company held 5 .4% equity or 907.5 million shares of the company with a market value of $120.4 billion.
Bank of America (4.3% drop)
Berkshire Hathaway’s second largest stake is in Bank of America Corp. Warren Buffett owns 1.03 billion shares worth $45.9 billion in Bank of America, or 12.8% of the company. Bank of America Corp’s share price fell 4.3% over the past two months to $44.20 from $46.18 on the first trading day of CY 2022.
American Express Company (up 16%)
According to Berkshire Hathaway’s 2021 shareholder letter, the company held 151 million shares or a 19.9% stake in American Express Company, making it Berkshire Hathaway’s third-highest stake. In the first two months of this calendar year, American Express Company stock price has climbed almost 16% (15.65%). As of last close, American Express Company stock price was $194.54, down from $168.21 on Jan 3, 2022.
The Coca Cola Company (up 5%)
As of December 2021, Berkshire Hathway held a 9.2% or 400 million share stake in Coca Cola – its fourth highest stake. The market value of Warren Buffett’s Coca Cola holdings was $23.68 billion. So far in the year, The Coca Cola Company’s stock price has gained nearly 5% to $62.24 (at the previous day’s close), from $59.30 at the start of the year. calendar year 2022.
Chevron Corporation (up 21%)
Berkshire Hathaway’s 10th highest holding is in Chevron Corporation. Warren Buffett owns 38 million shares worth $4 billion in Chevron Corporation, or 2% of the company. Chevron Corporation stock price climbed almost 21% (20.74%) in the first two months of CY22 to $144 from $119.26 on the first trading day of the calendar year in Classes.