Warren Buffett, founder of the widely followed Oracle (NYSE:ORCL) Omaha, who is currently Chairman and CEO of Berkshire Hathaway (NYSE: BRKa) and (NYSE: BRKb), is one of the most prominent investors in the buying space. Retaining Value in the US Buffett’s views on both the economy and markets, expressed in his regular addresses to shareholders, as well as his long-term investments, usually inspire hordes of small investors.
Since the late 1950s, Buffett and longtime partner Charlie Munger have transformed Berkshire Hathaway from a survival-struggling textile group to a global one. In fact, BRK.A stock, which closed on August 13th at $43,124.00 (which is not a typo), is currently the highest share price of any company in history. Its market capitalization (maximum) is more than $654 billion.
On August 7, Berkshire Hathaway released its financial indicators for the second quarter. Operating profit of $6.69 billion increased by 21% year over year. The value of its holdings in energy and rail companies increased the improvement of the economic climate and the reopening of the economy.
The group repurchased approximately $6.0 billion of its shares. As a result, the total value of the six-month share repurchase was approximately $12.6 billion.
As many of our readers know, Berkshire Hathaway owns several companies, including Geico, BNSF Railroad and Cis Candy. It also has significant investments in several companies listed on the stock exchange, which mainly operate in three sectors:
Banking, Insurance and Finance (total fair value of $66,479 billion
Consumer products (total fair value $146,330 billion)
Commercial, industrial and other products (total fair value $68,361 billion)
The latest SEC reports showed that at the end of June, nearly 69% of the total fair value was concentrated in four companies.
American Express (NYSE: NYSE: AXP) – $25.1 billion;
Apple (NASDAQ:NASDAQ:AAPL) – $124.3 billion
Bank of America (NYSE: NYSE: BAC) – $42.6 billion
Coca-Cola (LON:CCH) (NYSE: KO) – $21.6 billion.
Currently, several other Berkshire Hathaway investments include AbbVie (NYSE: ABBV), Amazon (NASDAQ: AMZN), Bank of New York Mellon (NYSE: NYSE: BK), Bristol-Myers Squibb (NYSE: BMY), DaVita ( NYSE: DVA), General Motors (NYSE: NYSE: GM), Kroger (NYSE: NYSE: KR), Marsh & McLennan (NYSE: MMC), MasterCard (NYSE: NYSE: MA), Teva Pharmaceuticals (SE: 2070). ) (NYSE: TEVA), Verisign (NASDAQ: VRSN).
Berkshire Hathaway also invests in the S&P 500 Trust Investment Fund (NYSE:SPY), which tracks the S&P 500 index. It is an exchange-traded fund (ETF) that Buffett believes should be a staple in most retail portfolios. .
As the first ETF listed in the United States, SPY began trading in January 1993. The fund owns companies in all eleven GICS sectors.
Companies such as Apple, Microsoft (NASDAQ: MSFT), Amazon (NASDAQ:AMZN), Facebook (NASDAQ: NASDAQ:FB) and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) were the top names on the list. The top ten stocks account for 28% of net assets of $388.3 billion. YTD YTD Spy is up 32.4% and hit an all-time high on August 13.
This information on another ETF may be of use to Buffett’s followers.
SPDR Financial Sector Fund
Current Price: $38.58
52-week range: $22.94 – $38.95
Dividend Yield: 1.50%
Expense ratio: 0.12% per year
The SPDR® Financial Sector Fund (NYSE: XLF) invests in leading companies in the financial services industry, including banks, asset managers, insurance companies, brokers as well as real estate investment trusts (REITs). Since its inception in December 1998, net assets have been $42.6 billion.
XLF Fund, which has shares in 65 financial institutions, tracks a specific financial sector index.
Approximately 55% of total assets are concentrated in the top ten stocks. Among the biggest names on the list are Berkshire Hathaway Class B, JPMorgan (NYSE:JPM) Chase (NYSE:JPM), Bank of America, Wells Fargo (NYSE: WFC), Morgan Stanley (NYSE: NYSE:MS) and Citigroup (NYSE:MS). NYSE: C).
Closer examination of this fund shows that in addition to Berkshire Hathaway (NYSE:BRKb), other holdings include many additional names favored by Buffett. Also, since 12.70% of XLF is in BRK.A, buying XLF is an indirect way to buy shares held by the giant group.
YTD XLF is up about 30.9%, and like Spybot, it also reached an all-time high on August 13. In other words, the financial sector was the best performer in 2021. Financial firms have benefited from the economic recovery over the past several months.
Given the recent surge in stock prices for many of the names in XLF, short-term profit taking may be a possibility. Interested readers will find the best value to be between $35 and $37.
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