Original title: Underperform the S&P Index! Buffett’s net profit last year “cut in half”, and his latest position in the fourth quarter was exposed!Apple and BYD are only technology stocks, and the top ten heavyweights still have these
The stock god also underperforms the index!
On the evening of February 27, Buffett’s Berkshire Hathaway’s financial report revealed that Buffett’s Berkshire Hathaway’s 2020 annual revenue was $245.510 billion.Net profit42.521 billion US dollars, compared with the same period last yearshareholderAttributableNet profitFor US$81.417 billion, the income was “halved.” Berkshire Hathaway 2020the companyPer shareMarket valueThe increase of only 2.4%, while the S&P 500 index increased by 18.4%, Berkshire underperformed by 16%.
As of the end of 2020, Buffett’s largest holding stock is stillappleCompany, despiteappleDuring the fourth quarter of last year, Buffett reduced his holdings by tens of millions of shares. Among Buffett’s top ten stocks, the only new energy vehicle stock is from China.BYDCompany, as of the end of 2020, Berkshire Hathaway’s stock portfolio holdsBYDThe company’s stock market capitalization is $5.897 billion.If you putappleIn terms of consumer stocks, as of the end of 2020, Buffett’sinvestmentIn the portfolio, the consumer industry accounts for 55.93%, and the financialserviceIndustry accounted for 23.05% and technology stocks accounted for 3.19%.
Berkshire Hathaway earned half last year
The financial report shows that Buffett’s Berkshire Hathaway’s revenue in 2020 is $245.510 billion, a 3.6% drop from $254.616 billion in the same period last year.Berkshire Hathaway’s net attributable shareholdersprofitThe net profit attributable to shareholders in the same period last year was US$81.417 billion.
Specifically,InsuranceThe total revenue of other businesses was 63.401 billion US dollars, an increase of 3.8% from 61.078 billion US dollars in the same period last year.Sales and service revenue was US$127.04 billion, compared to US$134.989 billion in the same period last year; lease revenue was US$5.209 billion, compared to US$5.856 billion in the same period last year; interest, dividends andOther investmentRevenue was US$8.092 billion, compared to US$9.240 billion in the same period last year; railways,Public utilitiesAnd energy total revenue was 41.764 billion US dollars, compared with 43.453 billion US dollars in the same period last year. Investment and derivative contract income was 40.746 billion U.S. dollars, compared with 72.607 billion U.S. dollars in the same period last year.
However, starting from the fourth quarter of 2020, Berkshire Hathaway’s situation has improved significantly, with an operating profit of US$5.02 billion in the fourth quarter of 2020.YoYAn increase of 14%, the same period last year was 4.42 billion US dollars.
In terms of cash on hand, as of the end of 2020, Berkshire Hathaway’s cash reserves were $138.3 billion.
apple,BYDThe only core technology stock in the stock god
PositionAccording to the information, as of December 31, 2020, Buffett’s largest holding is Apple, with a market value of US$120.4 billion; the second largest holding isBank of America, The market value of the position is 31.3 billion US dollars; the third largest stock isCoca Cola, Buffett holdsCoca ColaThe market value of 21.9 billion US dollars).
In addition, Buffett also holds travel finance companiesAmerican Express, The market value of holdings is 18.3 billion US dollars, the market value of holding Verizon Communications is 8.6 billion US dollars, and the holdingsMoodyMarket value of 7.16 billion U.S. dollars, holding positionsUnited Statesbank, A market value of $6.9 billion, andChevron, Charter communications, etc.
Among Buffett’s ten largest holdings, what has attracted the most attention of Chinese investors is that Buffett has listed BYD as the eighth largest holding. As of the end of 2020, the shares of BYD held in Berkshire Hathaway’s stock portfolio The market value is 5.897 billion US dollars, showing that the stock god Buffett is in the middleGuoxin EnergyCar assets are valued.
Corresponding to Buffett’s heavy warehouse BYD’s stock, Buffett and its partners have been bearishTeslathe company.
Buffett previously said that Musk is greatenterpriseHome butTeslaStocks are not good investment targets.Automobile industryCompetition is fierce, with large cash reservesTeslaCompetitors will not withdraw.Buffett’s partnerCharlie MungerPreviously held similar views. He was asked about “Tesla’s fully diluted enterprise value reaches 1 trillion US dollars” and “Bitcoinprice“Break through $50,000” when Munger quoted the British writer Samuel Johnson (Samuel Johnson) as saying, “I can’t tell the difference between fleas and lice.” In other words, he’s loyal to Bitcoin and Tesla is not optimistic and cannot tell which is worse.
Consumption accounts for half of the portfolio
According to previously disclosed information, Buffett made a reduction and liquidation of a series of stocks in the fourth quarter of 2020, including the stocks of Apple, the largest holding stock, being reduced.
According to whalewisdom data, in the fourth quarter of last year, Berkshire reduced its holdingsFuGuo bank(WFC.US) 58% to 52.42 million shares.Reduced its holdings of Apple (AAPL.US) by 6% (57.16 million shares) to 887 million shares. Apple was Berkshire’s second largest share in the fourth quarter of last yearLighten upshare. As of December 31, 2019, the holding ratio was 5.6%, accounting for 47.78% of the total holdings. As of December 31, 2020, “Stock God” Buffett held 5.4% of Apple’s shares, accounting for 43.62 of the total holdings. %.
Barrick GoldIt is a stock that Buffett short-term liquidation. This stock was roughly bought by Buffett in the second quarter of 2020.PfizerBuffett bought it during the outbreak of the epidemic in the third quarter of 2020. Judging from the stock prices at the end of the third quarter and the end of the fourth quarter,PfizerThe company’s performance may be less than expected, at the end of the third quarterPfizerThe company’s stock price was $34.79, and by the end of the fourth quarter when Buffett’s holdings were reduced, Pfizer’s stock price was only $36.81.
According to the position structure, after a series of buying, increasing, reducing and liquidating, Buffett’s stock portfolio is still highly concentrated.
As of December 31, technology stocks accounted for 46.81% of the portfolio, financial services accounted for 23.05%, and consumer industries accounted for 12.31%. The proportion of investment in pharmaceutical stocks is relatively small, although the stock god will continue to increase in the third quarter of 2020. But if Apple is calculated as consumer stocks, the consumer industry accounted for 55.93% of the investment portfolio, financial services accounted for 23.05%, and technology stocks accounted for 3.19%.
Advice not to bear the United States
Buffett also stated in a letter to investors that evening that he should never be “short” on the United States.
In this letter, he roughly compared Berkshire Hathaway’sPerformanceAnd the performance of the US stock index-in 2020, Berkshire Hathaway’s per-stock market value increased by only 2.4%, while the S&P 500 index increased by 18.4%, Berkshire underperformed by 16%. It seems that Buffett’s performance in 2020 is not as good as the broader market, but for a long time, Buffett can easily cope with each year. From 1965 to 2020, Berkshire Hathaway’s compound annual growth rate per stock market value is 20.0%. Significantly more than 10.2% of the S&P 500 index, while Berkshire’s market value growth rate from 1964 to 2020 was as high as 281,052 times, while the S&P 500 index was only 234 times in the same period.
The open letter shows that Berkshire Hathaway’s fourth quarterNet investment income30.45 billion US dollars, compared with 24.53 billion US dollars in the same period of 2019. Approximately US$9 billion was spent on stock purchases in the fourth quarter, bringing the total purchase of stocks this year to US$25 billion.
Buffett also stated in a letter that evening that the saleable stocks held by Berkshire-worth $281 billion by the end of 2020-are actually a collection of companies. Berkshire cannot control the operations of these companies, but it does share their long-term prosperity in proportion.But from pureaccountingFrom the technical point of view, Berkshire’s share of their profits cannot be counted as Berkshire’s income. Unless these investment objects can pay Berkshire dividends, the latter can be counted as Berkshire. Hill’s accounts. Under GAAP, those interests maintained by Berkshire cannot be reflected.
Buffett stated in this letter that what Berkshire cannot see, but must always think in mind: those retained profits that are not seen in bookkeeping are usually creating value for Berkshire-very huge value.Investors use these reserved funds to expand their business and conductM&A, To pay off debts, and-in many cases, toRepurchaseTheir own stocks (this approach has substantially increased the proportion of our shares in their future earnings). As Berkshire pointed out in its shareholder letter last year, throughout the history of the United States, the retained earnings of companies have been the key driving force for their development and prosperity. Over the years, those factors that have created miracles for the Carnegie and Rockefeller families will also present their magic to millions of shareholders.
(Article Source:BrokerageChina)
(Editor in charge: DF387)
–
Solemnly declare: The purpose of this information released by Oriental Fortune.com is to spread more information and has nothing to do with this stand.
.
