Apple is the largest position in Warren Buffett’s Berkshire Hathaway. But it’s not the stock the famed investor is making the most money on now.
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Just one of the U.S. listed stocks in Berkshire Hathaway‘s (BRKA) portfolio, American Express (AXP), single-handedly added $8.5 billion in gains this year to Buffett’s portfolio, says an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge. That’s more than the gains on any other stocks in the Berkshire Hathaway portfolio.
In fact, three U.S. listed stocks in Berkshire Hathaway’s portfolio, American Express, Bank of America (BAC) and Coca-Cola (KO), generated more than $16 billion in value this year.
What’s Wrong With Apple?
It’s important to note what’s driving the Berkshire Hathaway portfolio now that its massive position in Apple is weak.
Shares of Apple are down 0.1% this year. That might not sound too bad, except for the fact the gadget maker is the largest position in the Berkshire Hathaway portfolio. It’s roughly half the portfolio. Apple’s current value in the portfolio is down $142 million this year.
Meanwhile, the S&P 500 is up nearly 12%. That huge gap is leaving a hole in the Berkshire Hathaway portfolio. But what’s filling that missing performance?
Buffett’s Biggest S&P 500 Winners
American Express, a financial firm, is picking up the slack for Apple. It’s up nearly 30% this year.
But that’s an enormous gain for Berkshire Hathaway. Why? Buffett’s holding company owns 151.6 million shares of American Express. That’s an enormous 21% slice of the company valued at $35.9 billion.
And another financial, Bank of America, is another big contributor. BofA shares are up nearly 18% this year. That’s added $6.2 billion in value to the portfolio. Again, it’s a huge position for Berkshire Hathaway. It owns 13.2% of BofA.
Not Just Financials
It might look like Berkshire Hathaway is banking on just financials. But it’s more than that.
Berkshire Hathaway owns 9.3% of Coca-Cola (KO). And it’s a good thing this year. The stock is up nearly 7%. Due to the size of Berkshire Hathaway’s position, Coca-Cola added $1.6 billion to the portfolio.
And that’s definitely putting a smile on Buffett’s face this year.
Biggest Dollar-Value Berkshire Hathaway Gains
This year so far
| Company | Symbol | % gain this year | Gain in Berkshire Hathaway portfolio ($ billions), YTD |
|---|---|---|---|
| American Express | (AXP) | 29.8% | $8.5 |
| Bank of America | (BAC) | 17.8% | 6.2 |
| Coca-Cola | (KO) | 6.8% | 1.6 |
| Chevron | (CVX) | 7.2% | 1.3 |
| DaVita | (DVA) | 32.4% | 1.2 |
Sources: S&P Global Market Intelligence, IBD
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