ETFs
Berkshire Hathaway ETFs Rise After Company’s Strong Earnings
Warren Buffett
Berkshire Hathaway shares rose nearly 1% Monday after the conglomerate reported strong first-quarter earnings over the weekend.
The Warren Buffet-led company reported first-quarter operating profit of $11.2 billion, up 39% from last year.
Net income was $12.7 billion, down 64% year-over-year due to fluctuations in Berkshire’s stock portfolio.
Berkshire owns a multitude of companies across many different industries, including wholly owned subsidiaries GEICO, BNSF Railway Company and Alleghany Corporation.
He also holds positions in publicly traded stocks, such as Apple Inc., his most valuable holding.
Buffet’s company owns $135.4 billion worth of the tech giant’s stock, or about 40% of Berkshire’s publicly traded portfolio.
Berkshire reduced its position in Apple by about 13% during the first quarter, according to CNBC calculations.
Despite this, it remains by far the company’s most valuable stock, and at last weekend’s annual shareholder meeting, Buffet explained that he remains bullish on the stock.
Besides Apple, Berkshire also has significant stakes in Bank of America, American Express, Coca-Cola, Chevron and Occidental Petroleum.
ETF with Berkshire weightings
Although it has exposure to many industries, Berkshire is classified as a financial company based on the Global Industry Classification Standard.
Of the 234 exchange-traded funds listed in the United States that own the businessmany of them are ETFs that track the financial sector.
THE iShares US Financial Services ETF (IYG)THE iShares US Financials ETF (IYF) and the SPDR Fund for Selected Financial Sectors (XLF) have the largest weightings in the stock, with allocations of 13% to 15%.
Other exchange-traded funds with a heavy weighting in Berkshire Hathaway include Davis Select US Equity ETF (DUSA), with a position of 10%; THE Avantis Inflation Focused Stock ETF (AVIE), with a position of 6%; and the iShares Russell Top 200 Value ETF (IWX)also with a position of 6%.
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