Investments in equity securities

9 Months Ended

Sep. 30, 2020

Investments Debt And Equity Securities [Abstract]

Investments in equity securities

Notes to Consolidated Financial Statements (Continued)

Note 4. Investments in equity securities

Investments in equity securities as of September 30, 2020 and December 31, 2019 are summarized in the tables below (in millions).

	Cost Basis		Net Unrealized Gains		Fair Value
September 30, 2020*
Banks, insurance and finance	$	27,145	$	29,065	$	56,210
Consumer products		37,016		98,022		135,038
Commercial, industrial and other		41,468		12,601		54,069
	$	105,629	$	139,688	$	245,317

* Approximately 70% of the aggregate fair value was concentrated in four companies (American Express Company – $15.2 billion; Apple Inc. – $111.7 billion; Bank of America Corporation – $24.9 billion and The Coca-Cola Company – $19.7 billion).

	Cost Basis		Net Unrealized Gains		Fair Value
December 31, 2019*
Banks, insurance and finance	$	40,419	$	61,976	$	102,395
Consumer products		38,887		60,747		99,634
Commercial, industrial and other		31,034		14,964		45,998
	$	110,340	$	137,687	$	248,027

* Approximately 60% of the aggregate fair value was concentrated in four companies (American Express Company – $18.9 billion; Apple Inc. – $73.7 billion; Bank of America Corporation – $33.4 billion and The Coca-Cola Company – $22.1 billion).

On August 8, 2019, Berkshire invested a total of $10 billion in Occidental Corporation (“Occidental”) newly issued Occidental Cumulative Perpetual Preferred Stock with an aggregate liquidation value of $10 billion, and warrants to purchase up to 80 million shares of Occidental common stock at an exercise price of $62.50 per share. In accordance with the terms of the warrants, on August 3, 2020, the number of shares of common stock that can be purchased was increased to 83.86 million shares and the exercise price was reduced to $59.62 per share. The preferred stock accrues dividends at 8% per annum and is redeemable at the option of Occidental commencing in 2029 at a redemption price equal to 105% of the liquidation preference plus any accumulated and unpaid dividends, or mandatorily under certain specified capital return events. Dividends on the preferred stock may be paid in cash or, at Occidental’s option, in shares of Occidental common stock. The warrants are exercisable in whole or in part until one year after the redemption of the preferred stock. Our investments in Occidental are included in the commercial, industrial and other category in the preceding tables.