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For nearly 60 years, Warren Buffett has been dazzling Wall Street with his investing prowess. Whereas the widely followed S&P 500 has delivered a hearty total return (including dividends paid) of around 34,700% since the Oracle of Omaha became CEO of Berkshire Hathaway ( BRK.A -2.

04% ) ( BRK.B -1.96% ) , Buffett has generated aggregate returns in excess of 5,000,000% for his company's Class A shareholders.



Though past performance is no guarantee of future results, Warren Buffett has demonstrated an ability to continually outperform the benchmark indexes over extended timelines. The catalysts that fueled his phenomenal investment returns are well documented. Many books have been written describing the attributes he looks for when investing, such as sustainable moats, top-notch management teams, and strong capital-return programs.

But the one factor that deserves far more credit than it's given for Berkshire Hathaway's otherworldly returns over the past six decades is portfolio concentration . Despite stakes in 44 stocks and two exchange-traded funds, the vast majority of Berkshire's invested assets have been put to work in just a handful of Buffett's top ideas. Following the release of Berkshire Hathaway's latest Form 13F, which updates buying and selling activity from the quarter ended in March, 72% ($272.

3 billion) of the $378 billion portfolio Warren Buffett oversees is invested in just five stocks. Apple: $149,766,876,019 (39.7% of invested assets) Despite selling nearly 1.

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