Jakarta, CNBC Indonesia – The fortune of billionaire Warren Edward Buffett has grown again. His Berkshire Hathaway conglomerate has posted a profit of US $ 17 billion or the equivalent of Rp 244 trillion (assuming Rp 14,000 / US $) from just five of its shares this year.
Buffett’s distinctive approach to sniffing out high-quality undervalued businesses and investing for the long term is finally paying off ahead of the global economic re-opening this summer.
Reporting from Business Insider, the stock price of the company in which Buffett invested rose US $ 9 billion (Rp 129 trillion) in Bank of America alone. The banking group’s share price has surged 30% since early January, increasing the value of Berkshire’s shares from US $ 30 billion (Rp 431 trillion) to US $ 39 billion (Rp 560 trillion).
In addition, Berkshire has made a profit of US $ 3.7 billion (Rp 53 trillion) in American Express shares, as the financial services group’s shares have surged 30% this year. It also generated US $ 1.5 billion (IDR 21 trillion) in Kraft Heinz stock.
Then cuan US $ 1.4 billion (Rp 20 trillion) from General Motors shares, and US $ 1.3 billion (Rp 18 trillion) in US Bancorp in less than three months.
Buffett’s bet on five Japanese company stocks last fall also paid off. Shares of Itochu, Mitsui, Marubeni, Mitsubishi and Sumitomo have gained an average of 26% this year, lifting the combined value of Berkshire’s holdings by US $ 1.6 billion (Rp 22 trillion).
Other Berkshire investments have also increased. Chevron, Suncor Energy and Synchrony Financial have all gained more than 20% this year, while Wells Fargo, previously one of Berkshire’s biggest holdings, has gained 37%. Meanwhile, the benchmark S&P 500 index is up 5.8% this year.
However, Berkshire’s gains were partially offset by a recent exodus of technology stocks. Apple, which makes up more than 40% of Buffett’s US stock portfolio, has shed 7% this year. The decline has wiped out nearly US $ 8 billion (Rp 114 trillion) from the value of Berkshire’s shares.
Berkshire has also taken a hit from Coca-Cola, leaving its share value of around US $ 900 million (Rp 12 trillion) less today than it was in early January. The company also dropped about US $ 400 million (Rp 5 trillion) for Snowflake and Verizon.
(hps / hps)
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