Warren Buffett’s Berkshire Hathaway has beaten the benchmark S&P 500 index so far this year. Berkshire Hathaway Class B stock has surged nearly 7 per cent, and Class A nearly 5 per cent in the first two months of 2022. In comparison, the S&P 500 index tanked 8.81 per cent. Over the long term, Warren Buffett’s firm has delivered an annual average return of 20.1 per cent since 1965, according to Berkshire Hathaway’s 2021 shareholder letter. The benchmark S&P 500 index delivered annualised total return, including dividends, of 10.5 per cent over the same 56 years.
Warren Buffett’s Berkshire Hathaway has the largest holdings in four stocks – Apple, Bank of America, American Express Company, and The Coca-Cola Company (as at the end of December 2021). In the first two months of current year 2022 (year-to-date), Buffett’s portfolio stock prices have zoomed up to 21 per cent. Out of the top 10 largest holdings, just three stocks have delivered positive returns so far this year – American Express, Coca Cola, and Chevron Corporation.
Apple (9.3% fall)
In terms of market value, Berkshire Hathaway has the largest holding in Apple. Warren Buffett held 907.5 million Apple shares or 5.6 per cent stake as of December 2021 for a total market value of $161.1 billion. So far this calendar year 2022, Apple shares have plunged 9.3 per cent to $165.12, from $182.01 as on 3rd January 2022. According to Berkshire Hathaway’s letter to shareholders of 2021, the company owned 5.4 per cent stake or 907.5 million shares in the company with a market value of $120.4 billion.
Bank of America (4.3% fall)
Berkshire Hathaway’s second highest holding is in Bank of America Corp. Warren Buffett holds 1.03 billion shares worth $45.9 billion in Bank of America, or 12.8 per cent of the company. Bank of America Corp stock price has fallen 4.3 per cent in the last two months, to $44.20, from $46.18 on the first trading day of CY 2022.
American Express Company (16% rally)
According to Berkshire Hathaway’s 2021 shareholder letter, the company had 151 million shares or 19.9 per cent stake in American Express Company, making it the third highest holding of Berkshire Hathaway. In the first two months of this calendar year, American Express Company stock price has zoomed nearly 16 per cent (15.65 per cent). As of last close, American Express Company share price stood at $194.54, from $168.21 on 3rd January 2022.
The Coca Cola Company (5% gain)
As of December 2021, Berkshire Hathway held 9.2 per cent stake or 400 million shares in Coca Cola — its fourth highest holding. Warren Buffett’s Coca Cola holdings market value was $23.68 billion. So far in the year, The Coca Cola Company stock price has gained nearly 5 per cent to $62.24 (as of previous day’s close), from $59.30 at the start of the calendar year 2022.
Chevron Corporation (21% rally)
Berkshire Hathaway’s 10th highest holding is in Chevron Corporation. Warren Buffett holds 38 million shares worth $4 billion in Chevron Corporation, or 2 per cent of the company. Chevron Corporation stock price has soared nearly 21 per cent (20.74 per cent) in the first two months of CY22, to $144, from $119.26 on the first trading day of the current calendar year.