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No. The S&P 500, like most other market-cap-weighted indexes, uses float-adjusted market cap, meaning that they exclude shares owned by other public companies w
by atombender 5y ago
No. The S&P 500, like most other market-cap-weighted indexes, uses float-adjusted market cap, meaning that they exclude shares owned by other public companies when computing the weightings. So the fact that BRK.A owns shares in other companies in the index is accounted for; you don't get double counting, and so your exposure is not inflated.
- anonu 5y agoYou're right on float adjustment. But shares of coke held by Berkshire are still considered part of float.
- atombender 5y agoThe S&P considers the shares of Coke held by Berkshire to be excluded from the float. S&P's float adjustment methodology is described here [1]: "Float adjustment excludes shares that are closely held by control groups, other publicly traded companies, government agencies, or other long-term strategic shareholders." [1] https://www.spglobal.com/spdji/en/documents/index-policies/methodology-sp-float-adjustment.pdf https://www.spglobal.com/spdji/en/documents/index-policies/m...