Major Institutions Hold Over 50% Shares in Global Corporations

Institutional investors hold significant stakes in several major companies, including Berkshire Hathaway (54%), Cathay General Bancorp (76%), Malaysian Resources Corporation Berhad (52%), Aurizon Holdings (62%), and Federal Bank (61%). This high level of institutional ownership indicates these groups have substantial influence over the companies' stock prices and potential volatility linked to large-scale trading decisions. Institutional ownership often serves as a vote of confidence and lends credibility to a company within the investment community, though it is not foolproof as institutions can make poor investment decisions. The presence of multiple institutional investors can create 'crowded trades' that might lead to rapid share price declines if those investors decide to sell simultaneously. These dynamics highlight both the opportunities and risks associated with stocks heavily owned by institutions, emphasizing the importance of understanding ownership structures alongside company performance and analyst forecasts. Investors should be cautious but also consider institutional involvement as a notable factor when evaluating these stocks.