Investments in equity securities

3 Months Ended

Mar. 31, 2021

Investments Debt And Equity Securities [Abstract]

Investments in equity securities

Note 4. Investments in equity securities

Investments in equity securities as of March 31, 2021 and December 31, 2020 are summarized in the tables below (in millions).

	Cost Basis		Net Unrealized Gains		Fair Value
March 31, 2021*
Banks, insurance and finance	$	26,730	$	52,081	$	78,811
Consumer products		34,787		101,445		136,232
Commercial, industrial and other		44,934		22,120		67,054
	$	106,451	$	175,646	$	282,097

* Approximately 69% of the aggregate fair value was concentrated in four companies (American Express Company – $21.4 billion; Apple Inc. – $110.9 billion; Bank of America Corporation – $40.0 billion and The Coca-Cola Company – $21.1 billion).

	Cost Basis		Net Unrealized Gains		Fair Value
December 31, 2020*
Banks, insurance and finance	$	26,312	$	40,167	$	66,479
Consumer products		34,747		111,583		146,330
Commercial, industrial and other		47,561		20,800		68,361
	$	108,620	$	172,550	$	281,170

* Approximately 68% of the aggregate fair value was concentrated in four companies (American Express Company – $18.3 billion; Apple Inc. – $120.4 billion; Bank of America Corporation – $31.3 billion and The Coca-Cola Company – $21.9 billion).

Notes to Consolidated Financial Statements (Continued)

Note 4. Investments in equity securities (Continued)

Our equity security investments include $10 billion in Occidental Corporation (“Occidental”) Cumulative Perpetual Preferred Stock with an aggregate liquidation value of $10 billion and warrants to purchase up to 83.86 million shares of Occidental common stock at an exercise price of $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 is mandatorily redeemable under specified 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.