Warren Buffett likely took a $ 6 billion hit on just 4 stocks in Monday’s painful sell-off

Warren Buffett.
  • Warren Buffett likely took a $ 6 billion hit on four stocks during Monday’s sale.
  • The investor’s holdings in Apple, Bank of America, Coca-Cola and American Express lost value.
  • Buffett’s Berkshire Hathaway made more than $ 150 billion in total gains on these positions.
  • See more stories on the Insider business page.

Warren Buffett likely suffered a $ 6 billion blow to his stock portfolio on Monday, as four of his biggest holdings fell in value in the painful market sell-off.

The investor’s Berkshire Hathaway conglomerate counts Apple, Bank of America, American Express and Coca-Cola among its largest positions. Those four stocks fell between 1% and 4% on Monday, wiping out about $ 5.9 billion from the combined value of Buffett’s holdings in those companies.

Berkshire had 887 million Apple shares at last count. Assuming he didn’t touch that position, its value fell $ 3.5 billion on Monday. The conglomerate also took a $ 1 billion hit on Bank of America, a $ 2.7 billion hit on Coca-Cola and a $ 1.1 billion hit on American Express.

Buffett won’t be too bothered, as he is focused on long-term performance and has already made a fortune on those stocks. For example, Berkshire spent $ 36 billion to build a stake in Apple worth $ 126 billion today, more than tripling its money on paper.

The investor’s company also spent $ 1.3 billion on Coca-Cola shares worth $ 22 billion today, a gain of about 17 times. Additionally, her $ 25 billion stake in American Express has a cost base of $ 1.3 billion, and she spent approximately $ 15 billion to build up a Bank of America position worth $ 37 billion. dollars today.

Overall, Buffett’s total unrealized gains on these four stocks are over $ 150 billion, more than the market caps of Starbucks ($ 136 billion), IBM ($ 123 billion) or Goldman Sachs ($ 120 billion). billions of dollars).

Buffett concentrates his money on a few key investments instead of spreading it over hundreds of them, increasing his returns when his bets pay off, but also exposing it to steeper declines. Apple has accounted for 45% of the total value of Berkshire’s stock portfolio in recent weeks, and the conglomerate’s top five holdings have accounted for 75%.

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