During the liquidation of the New York Stock Exchange (USA) on Monday, Warren Buffett would have lost about 6,000 million dollars due to the fall in the shares of four companies, according to estimates by Market Insider.
Some of the largest holdings in Berkshire Hathaway, the multinational corporation chaired by Buffet, are shares of Apple, Bank of America, American Express and Coca-Cola. Earlier this week, shares of these companies fell between 1% and 4%, reducing the combined value of the famous investor’s stakes in these companies by $ 5.9 billion.
However, the outlet points out that Buffett probably doesn’t care much because the model of his investments focuses on long-term results.
The seasoned entrepreneur focuses his money on a few key investments instead of spreading it over hundreds of companies, increasing his profits when his bets pay off, but also putting the investment at 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 thanks to these actions. 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 firm also spent $ 1.3 billion to buy 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 shares of Bank of America has now translated into a stake of $ 37 billion.
Overall, Buffett’s total unrealized profit on these four stocks exceed $ 150,000 million, more than the market capitalization of Starbucks ($ 136 billion), IBM ($ 123 billion) or Goldman Sachs ($ 120 billion).