Warren Buffett does not like to lose money in general, so
losing $1 billion before lunch on a Monday morning can not be going down
well.
The plunge in IBM shares Monday after its weak earnings results cost the Oracle of Omaha dearly.
The stock fell $15.05 at the open, and Buffett held about 70.2 million shares as of June 30, according to the most recent SEC filings.
That means the sharp decline cost him $1.06 billion—a drop in the Berkshire Hathaway bucket, to be sure, but still noteworthy.
In April, after a prior weak earnings report, Buffett told CNBC he had not "soured" on IBM, that he had bought more stock this year and that he had not sold a share.
The stock was recently the third-largest holding in Buffett's portfolio, trailing only Wells Fargo and Coca-Cola.
The plunge in IBM shares Monday after its weak earnings results cost the Oracle of Omaha dearly.
The stock fell $15.05 at the open, and Buffett held about 70.2 million shares as of June 30, according to the most recent SEC filings.
That means the sharp decline cost him $1.06 billion—a drop in the Berkshire Hathaway bucket, to be sure, but still noteworthy.
In April, after a prior weak earnings report, Buffett told CNBC he had not "soured" on IBM, that he had bought more stock this year and that he had not sold a share.
The stock was recently the third-largest holding in Buffett's portfolio, trailing only Wells Fargo and Coca-Cola.
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How to feel good when you sit on paper losses?
ReplyDeleteQuote this article.
You see Warren Buffet also has paper losses!
:-)
This goes to show, he is only human.
ReplyDeleteAlso a lesson for us all, do not be disheartened by our paper losses as even the Gurus having facing the same paper losses problems from time to time.
$1B paper lost for WB? Chicken lah.
ReplyDeleteHe has $50B cash on hand and ready to deploy when the tie is right. He said he is waiting for the Fat Ptich to swing.
Ouh... I mean "when the time is right"
DeleteWhy Warren Buffett Keeps Buying IBM
ReplyDeletehttp://www.forbes.com/sites/gurufocus/2013/01/08/why-warren-buffett-keeps-buying-ibm/
Down $2.5B this week, IBM & Coke add to Buffett's woes
ReplyDelete