Billionaire investor Warren Buffett’s investment firm, Berkshire Hathaway, is facing a staggering $12.6 billion loss on its 15 worst-performing U.S.-listed stocks this year, according to data analyzed by Investor’s Business Daily.
This loss is based on the current holdings’ dollar value and is a result of Buffett’s significant investments in the financial sector, which has been hit hard in recent weeks. Some of the banks in Berkshire Hathaway’s portfolio include Bank of America, Ally Financial, Bank of New York Mellon, and U.S. Bancorp.
As per Bespoke Investment Group, the market value of banks worldwide has fallen over $500 billion in just the past week and a half, marking a historic decline. This downturn is due to the impact of the COVID-19 pandemic and its potential to disrupt global economies.
Warren Buffet Bank of America investment is the largest loser of these financial stocks, with a loss of over $4 billion in just the first few months of this year. This stock’s value has dropped by 12.8%, and as the top shareholder with a 12.6% stake in the bank, the loss is a significant hit to Berkshire Hathaway. The firm’s investment in Chevron has also been hit, with an 8.8% stake and a decline of 14.1% this year due to falling oil prices.
While Berkshire Hathaway has been hit hard by the decline in the financial sector, it has been fortuitous in its decision to reduce its holdings in some banks. Berkshire Hathaway has been reducing its position in Bank of New York Mellon since 2018, with the current 3.1% stake only down by $28.5 million this year.
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Similarly, the Warren Buffet company has sold almost all of its shares in the U.S. Bancorp, a bank that has fallen almost 17% in value this year. The Warren Buffet company is also down by $31 million on Ally Financial’s 4.4% decline in value.
Overall, Warren Buffet net worth and the value of Berkshire Hathaway’s portfolio are taking a hit due to the losses in the financial sector. While some of the firm’s investments are weathering the storm better than others, the overall decline in the market value of banks worldwide has caused a significant decline in the Warren Buffet company’s portfolio value.
Despite this, Berkshire Hathaway remains a significant company and one of the largest investors in the world, with a portfolio of roughly 50 U.S.-listed stocks. Investors and market analysts will undoubtedly continue to watch the firm’s moves in the financial sector closely.
In Warren Buffet latest news, the financial sector’s decline has undoubtedly affected his company and portfolio’s stock price. However, given Buffett’s reputation as a long-term investor, it is left to be seen how he will react to the market’s volatility and how he will adjust his portfolio accordingly.
