Warren Buffett beats S&P 500 so far this year; how you can buy all the stocks that Buffett buys

By: |
Updated: August 13, 2021 3:01 PM

Warren Buffett's Berkshire Hathaway Class A and Class B shares have beaten benchmark index S&P 500 so far this year.

Warren buffett, berkshire HathawayBerkshire Hathaway -- which holds multibillion dollar stakes in giants such as Apple, The Coca-Cola, Bank of America, others -- slowed down share buybacks in April-June quarter of 2021. Image: Reuters

Warren Buffett’s Berkshire Hathaway Class A and Class B shares have beaten benchmark index S&P 500 so far this year. Berkshire Hathaway Inc Class A and Class B share prices have risen over 27 per cent on a year-to-date (YTD) basis, outperforming the S&P 500 index, which soared 20.19 per cent. Berkshire Hathaway — which holds multibillion-dollar stakes in giants such as Apple, Coca-Cola, Bank of America, others — slowed down share buybacks in April-June quarter of 2021.

Warren Buffett’s Berkshire Hathaway’s earnings highlighted that Berkshire Hathaway bought back $6 billion of stocks in the quarter ended June 30, 2021, as compared to the $6.6 billion repurchased stocks during the first three months of the year. Berkshire Hathaway paid $12.6 billion in the first six months of 2021 to buy back shares of its Class A and B common stock, the earnings report showed. The company reported an operating profit of $6.7 billion, net income of $28.1 billion, and revenue of $69.1 billion in the second quarter of the current fiscal, last week.

Berkshire Hathaway share price jumps 100% in 5 years

Berkshire Hathaway Inc Class A and Class B share prices have jumped 20 per cent in six months while over 36 per cent in one year period. While, both the Warren Buffett’s stocks have nearly doubled in the last 5 years. Berkshire Hathaway Inc Class A shares are trading at $4,38,160, and Class B shares at $291.28. The reason why Class A stock trades at such a high price is that Berkshire Hathaway’s Class A shares have not gone through any stock splits in the history of the company. Retail investors may seek to benefit from Warren Buffett’s unique stock picking, by just buying Berkshire Hathaway stocks, in turn, benefiting from the rise in all the stocks that Berkshire Hathaway owns.

So far this calendar year, the S&P 500 index has soared 201.9 per cent, rising to 4,447.7, from 3,700.65 at the start of 2021. In overnight trade on Wall Street on Wednesday, US stock indices — the Dow Jones Industrials and S&P 500 — posted record closing highs, on the report of US lawmakers approving a trillion-dollar infrastructure package. The Dow Jones ended at 35,484.9, and the S&P 500 at 4,447.7. Earlier this month, Goldman Sachs upgraded its year-end target price for S&P 500 to 4,700, implying a 5.6 per cent rally from the current levels.

Berkshire Hathaway posts strong results in Jan-Jun 2021

Warren Buffett’s Berkshire Hathaway said that many of its businesses generated significantly higher earnings over the first half of 2021 compared to 2020, which included significant adverse effects from the pandemic. It also added that earnings of its manufacturing, service and retail businesses in 2021 benefited from higher customer demand in many of its businesses and exceeded earnings in 2019 as well.

Looking to invest in US Stocks? Open a free account with Stockal - India's first borderless investment platform.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Wall Street tech stocks running out of steam; value stocks could take centre stage now
2US Stocks get ‘monster’ inflows as traders exit cash on Fed relief
3U.S. stocks gain the most since August as Nasdaq 100 rose for the first time in more than a week