By the time 2022 ends, Warren Buffett’s Berkshire Hathaway will be the largest shareholder of eight stocks that include traditional oil companies and financial-services giants.
“Berkshire now enjoys dominant ownership in an unmatched collection of vast and diverse businesses,” Buffett, 92, wrote in his annual letter,
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Buffett said that last year there were 128 companies in the S&P 500 SPX,
that generated more than $3 billion in profit—and Berkshire was the largest shareholder in eight of these businesses: American Express AXP,
and Bank of America BAC,
from them.
Berkshire Chevron is also a major holder of CVX,
and Occidental Petroleum OXY,
continuing Buffett’s pledge in favor of the fossil-fuel CL00,
Other parts of Berkshire are steeped in ownership options, too.
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In addition, Buffett’s Berkshire holds the largest stake in Coca-Cola KO,
hp ink hpq,
Moody’s MCO,
and Paramount Global Para,
Coca-Cola and American Express may be one of Buffett’s standout investing stories over the long run; They each spent $1.3 billion on the stake nearly 30 years ago, and Berkshire’s holdings are now worth $25 billion and $22 billion, respectively.
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Warren Buffett Reflects on Berkshire’s Future, Taxes and Friendship
Buffett wrote, “Lesson for investors: As soon as the flowers bloom, the weeds fade away.” “Over time, it only takes a few winners to do wonders. And, yes, it helps to start early and live into your 90s, too.
Buffett also noted buybacks in AmEx and Apple AAPL,
,AAPL) — Berkshire’s largest position at the end of last year — increased company ownership in each name.
Buffett wrote, “The math isn’t complicated: When the number of shares goes down, your interest in many of our businesses goes up.” “Every little bit helps if repurchases are done at value-added prices.”
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In Buffett’s shareholder letter, released along with earnings on Saturday, the CEO also made clear his desire for the holding company to eventually retain a vastly diversified portfolio representing a mega-empire under new leadership.
Greg Abel, the current CEO of Berkshire Hathaway Energy, is expected to succeed Buffett as CEO.
Buffett wrote, “At Berkshire, there will be no finish line.”
In addition to those eight, Berkshire BRK.A,
BRK.B,
The railroad owns 100% of BNSF and 92% of BH Energy, with interests in natural gas, solar, power generation and more. BNSF and BH Energy both have revenues in excess of $3 billion. These are two companies that, if publicly traded, would be large enough to replace the two current members of the S&P 500 SPX,
Buffett noted.
“All told, our 10 controlled and non-controlled behemoths leave Berkshire
Buffett, in his letter, is more closely associated with the nation’s economic future than any other American company. “Furthermore, Berkshire’s insurance operations, although operated through several individually managed subsidiaries, have a value comparable to that of BNSF or BHE.”
Looking forward to more?
“Berkshire will always have loads of cash and US Treasury bills with a wide range of businesses. We will also avoid behavior that could have consequences
Inconvenient cash needs at inconvenient times include financial panics and unprecedented insurance losses.
