Berkshire Hathaway 2015 Annual Report Download - page 51

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Notes to Consolidated Financial Statements (Continued)
(4) Investments in equity securities
Investments in equity securities as of December 31, 2015 and 2014 are summarized based on the primary industry of the
investee in the table below (in millions).
Cost Basis
Unrealized
Gains
Unrealized
Losses
Fair
Value
December 31, 2015 *
Banks, insurance and finance .......................................... $20,026 $27,965 $ (21) $ 47,970
Consumer products .................................................. 6,867 18,022 (1) 24,888
Commercial, industrial and other ....................................... 35,417 6,785 (3,238) 38,964
$62,310 $52,772 $(3,260) $111,822
* Approximately 59% of the aggregate fair value was concentrated in the equity securities of four companies (American
Express Company – $10.5 billion; Wells Fargo & Company – $27.2 billion; International Business Machines Corporation
(“IBM”) – $11.2 billion; and The Coca-Cola Company – $17.2 billion).
Cost Basis
Unrealized
Gains
Unrealized
Losses
Fair
Value
December 31, 2014 *
Banks, insurance and finance .......................................... $22,495 $33,170 $ — $ 55,665
Consumer products .................................................. 6,951 18,389 (1) 25,339
Commercial, industrial and other ....................................... 28,924 8,578 (1,036) 36,466
$58,370 $60,137 $(1,037) $117,470
* Approximately 59% of the aggregate fair value was concentrated in the equity securities of four companies (American
Express Company – $14.1 billion; Wells Fargo & Company – $26.5 billion; International Business Machines Corporation –
$12.3 billion; and The Coca-Cola Company – $16.9 billion).
As of December 31, 2015 and 2014, we concluded that there were no unrealized losses that were other than temporary. Our
conclusions were based on: (a) our ability and intent to hold the securities to recovery; (b) our assessment that the underlying
business and financial condition of each of these issuers was favorable; (c) our opinion that the relative price declines were not
significant; and (d) our belief that market prices will increase to and exceed our cost. As of December 31, 2015 and 2014,
unrealized losses on equity securities in a continuous unrealized loss position for more than twelve consecutive months were
$989 million and $65 million, respectively.
Unrealized losses at December 31, 2015 included approximately $2.6 billion related to our investment in IBM common
stock, which represented 19% of our cost. IBM continues to be profitable and generate significant cash flows. Approximately
77% of the IBM-related unrealized losses occurred from the market price decline in the second half of 2015. We currently do
not intend to dispose our IBM common stock. We expect that the fair value of our investment in IBM common stock will
recover and ultimately exceed our cost.
Investments in equity securities are reflected in our Consolidated Balance Sheets as follows (in millions).
December 31,
2015 2014
Insurance and other .................................................................... $110,212 $115,529
Railroad, utilities and energy * ........................................................... 1,238 881
Finance and financial products ........................................................... 372 1,060
$111,822 $117,470
*Included in other assets.
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