Warren Buffet has always followed a concentrated investment approach and the latest results of Berkshire Hathaway shows that the ace investor’s five top holdings account for 69 percent of the aggregate fair value of its equity holdings.
“The five largest holdings… were American Express Company, Apple Inc., Bank of America Corporation, The Coca-Cola Company and Chevron Corporation,” stated the first quarter report released by the company.
“Our investments in equity securities over the years have been concentrated in relatively few companies. The fair value of our five largest holdings at March 31, 2025 and December 31, 2024 represented 69% and 71%, respectively, of the aggregate fair value of our equity securities,” it added.
The first quarter report further stated that pre-tax investment gains and losses included net unrealised losses of $6.8 billion in the first quarter of 2025 and net unrealized gains of $4.0 billion in the first quarter of 2024, attributable to changes in market prices on equity securities we held at the end of each period.
“Taxable investment gains and losses on equity securities sold, which is generally the difference between sales proceeds and the original cost basis of the securities sold, were gains of $3.1 billion in the first quarter of 2025 compared to $14.2 billion in 2024,” it added.
“We believe that investment gains and losses, whether realized from sales or unrealized from changes in market prices, are often meaningless in terms of understanding our reported consolidated earnings or evaluating our periodic economic performance. We also continue to believe the investment gains and losses recorded in earnings in any given period has little analytical or predictive value,” stated the quarter report.
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