Introduction

Warren Buffett’s Berkshire Hathaway reported impressive equity investment gains of over $20 billion in the second quarter. Let’s take a closer look at the key highlights of Berkshire Hathaway’s stock portfolio and its top holdings.

Top Five Holdings

During the April-June period, approximately 78% of Berkshire Hathaway’s stock portfolio’s aggregate fair value was concentrated in just five companies. These five companies include:

• Apple – Berkshire Hathaway’s investment in Apple has seen considerable growth, with a current valuation of $177.6 billion.
• Chevron – Although underperforming this year, Berkshire Hathaway’s stake in Chevron was worth $19.4 billion at the end of June.
• Coca-Cola – Berkshire Hathaway’s longtime holding in Coca-Cola remains one of its biggest bets.
• American Express – Another longtime holding, American Express, continues to be a significant investment for Berkshire Hathaway.
• Bank of America – Berkshire Hathaway also maintains a substantial stake in Bank of America.

Apple’s Impact and Market Performance

Berkshire Hathaway’s investment gains were largely driven by Apple’s market rally in the second quarter, as the tech giant experienced an 18% climb. However, Apple recently forecasted a decline in revenue for the September quarter, causing a slight setback. Nevertheless, Apple’s stock is still up 40% year to date.

Advice from Warren Buffett

It’s important to note that Warren Buffett advises investors not to focus on quarterly fluctuations in Berkshire Hathaway’s equity investments. According to him, the amount of investment gains or losses in any given quarter is usually meaningless and can be misleading to investors without accounting knowledge.