Ace investor Warren Buffett has been minting money by finding value in stock markets for decades now. Looking at some of the largest stock market investments made by Warren Buffett, two of the three companies where Berkshire Hathaway holds a double-digit stake, have helped the investor pocket $8.3 billion in just two months of 2021. Warren Buffett’s annual letter revealed that Berkshire Hathaway owned 18.8% of American Express, a multinational financial services corporation based in the United States.
Warren Buffett’s Berkshire Hathaway owned 151.61 million shares of the company at the end of 2020, investing $1.2 billion. The value of the shareholding translated to $18.33 billion on December 31 last year. The value of this investment has increased to $21 billion in just two months — assuming that Berkshire’s holding remains unchanged — helping Warren Buffet pocket an additional profit of $2.69 billion.
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The Oracle of Omaha, as Warren Buffett is often referred to, has also bought stocks of Bank of America worth $14 billion, picking an 11.9% stake in the lender. The share price of Bank of America has surged 19% so far this year, to now trade at $35.79 per share. The value of the holding at the end of last year was $31 billion and has now surged to a massive $36.96 billion — again, assuming it remains unchanged since the beginning of the year. Bank of America remains one of Warren Buffett’s most favoured stocks even when the ace investor has been trimming stake in other big banks such as JPMorgan Chase.
Collectively, these two stocks have helped Warren Buffet pocket gains worth $8.35 billion in just the last two months. However, even Buffett is not immune to stock market corrections, and has lost money in another major investment — Moody’s Corp. The risk assessment company, which owns Moody’s Investors Service and Moody’s Analytics, is the second largest investment of Berkshire Hathaway, where it owns a 13.2% stake. The value of this investment of Warren Buffett stood at $7.1 billion at the end of 2020 and has since fallen to $6.96 billion as the stock slipped 3% during the last two months.