Berkshire Hathaway Inc. (NYSE: BRK-A) recently released its latest changes to the company’s public equity holdings, as of June 30, 2014. What stood out the most was just how large some of the stakes have gotten compared to the total Buffett portfolio. Recent filings show that Warren Buffett and Berkshire Hathaway have started to become very concentrated in just a few holdings — approximately 58% of the $107.6 billion value of the Berkshire Hathaway Inc. (NYSE: BRK-B) total equity holdings was concentrated in just four stocks.
24/7 Wall St. wanted to look under the hood of the Berkshire Hathaway portfolio to see what else was going on with the largest holdings. With just four stocks reaching 58% of the total value, there were well over 40 total stocks held. When we looked at the top 10 positions, all of which are stakes over $2 billion as of June 30, then the number is even larger.
One issue stood out when it came to the concentration of holdings. The 13F filing showed the total positions as worth $107.6 billion, but the prior 10-Q filing showed some $116.9 billion. Using the 13F filing, the concentration of stocks is actually far larger. The top 10 holdings came to a market value of $89.8 billion, without consideration of rounding the numbers up and down. So, let’s just call it $90 billion for a full round number. That means that right at 77% of the 10-Q filing securities holdings were held by less than one-fourth of the public stocks.
Now using the 13F filing we took the stakes from that are listed with a total of $107.6 billion, and this $90 billion market value for the top 10 stocks held as of June 30, 2014, then more than 83% of the stock concentration is just in the top 10 stocks. That compares to a market cap for Berkshire Hathaway that is north of $320 billion.
As we will show, four of the stakes had market values of more than $10 billion each. The rest were all under $5 billion but also above $2 billion as of June 30. In this analysis, we have shown how much each stake held by Berkshire Hathaway was valued on June 30, 2014. We also listed how much the company’s stake is based on the total outstanding number of shares to show how much influence Buffett can have if he needs to reach out to these companies.
Here are the observations made about the 10 largest Buffett stakes of the entire Berkshire Hathaway holdings.