Berkshire Hathaway 2001 Annual Report Download - page 34

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(5) Investments in equity securities
Data with respect to investments in equity securities are shown below. Amounts are in millions.
Unrealized Fair
Cost Gains Value
December 31, 2001
Common stock of:
American Express Company(1)............................................................................. $1,470 $ 3,940 $ 5,410
The Coca-Cola Company..................................................................................... 1,299 8,131 9,430
The Gillette Company .......................................................................................... 600 2,606 3,206
Wells Fargo & Company ..................................................................................... 306 2,009 2,315
Other equity securities............................................................................................. 4,868 3,446 8,314
$8,543 $20,132(2) $28,675
Unrealized Fair
Cost Gains Value
December 31, 2000
Common stock of:
American Express Company(1)............................................................................. $ 1,470 $ 6,859 $ 8,329
The Coca-Cola Company..................................................................................... 1,299 10,889 12,188
The Gillette Company .......................................................................................... 600 2,868 3,468
Wells Fargo & Company ..................................................................................... 319 2,748 3,067
Other equity securities............................................................................................. 6,714 3,853 10,567
$10,402 $27,217(2) $37,619
(1) Common shares of American Express Company ("AXP") owned by Berkshire and its subsidiaries possessed
approximately 11% of the voting rights of all AXP shares outstanding at December 31, 2001. The shares are held
subject to various agreements with certain insurance and banking regulators which, among other things, prohibit
Berkshire from (i) seeking representation on the Board of Directors of AXP (Berkshire may agree, if it so desires,
at the request of management or the Board of Directors of AXP to have no more than one representative stand for
election to the Board of Directors of AXP) and (ii) acquiring or retaining shares that would cause its ownership of
AXP voting securities to equal or exceed 17% of the amount outstanding (should Berkshire have a representative
on the Board of Directors, such amount is limited to 15%). In connection therewith, Berkshire has entered into an
agreement with AXP which became effective when Berkshire's ownership interest in AXP voting securities reached
10% and will remain effective so long as Berkshire owns 5% or more of AXP's voting securities. The agreement
obligates Berkshire, so long as Kenneth Chenault is chief executive officer of AXP, to vote its shares in accordance
with the recommendations of AXP's Board of Directors. Additionally, subject to certain exceptions, Berkshire has
agreed not to sell AXP common shares to any person who owns 5% or more of AXP voting securities or seeks to
control AXP, without the consent of AXP.
(2) Net of unrealized losses of $143 million and $77 million as of December 31, 2001 and 2000, respectively.
(6) Realized investment gains (losses)
Realized gains (losses) from sales and redemptions of investments are summarized below (in millions). Realized
losses include impairment charges of $247 million in 2001.
2001 2000 1999
Equity securities and other investments —
Gross realized gains...................................................................................... $1,522 $4,467 $1,507
Gross realized losses..................................................................................... (369) (317) (77)
Securities with fixed maturities —
Gross realized gains...................................................................................... 411 153 39
Gross realized losses..................................................................................... (201) (348) (104)
$1,363 $3,955 $1,365