IBM and Coke represent two of Berkshire Hathaway’s three biggest investments (the biggest being Wells Fargo).
However, disappointing earnings announcements at these companies cost Warren Buffett around US$ 2.5 billion in the week gone by.
These losses add to a recent rough patch for Buffett, who slashed Berkshire Hathaway’s stake in British retailer Tesco recently. He has described buying into the stock as a “huge mistake” after the company announced another earnings disappointment and, over that, a £ 250 m accounting scandal.
Few seats remain at my Value Investing Workshop in Bangalore on 1st Nov. (Saturday). To join, please register here – https://t.co/VoXkYaHm9q
— Vishal Khandelwal (@safalniveshak) October 27, 2014
The media is rife with these big “mistakes”, especially Tesco, and is surprised how the world’s best investor could commit them. But then, Tesco isn’t Buffett first mistake and it won’t be his last mistake either.