If you are having a bad week then you should consider that Warren Buffett has just lost $2 billion in just 2 days. Warren is known for avoiding the quick buck and focus more on the long term performance of his investments.
His BRKB investment house or Berkshire Hathaway holds big Coke and IBM shares both of which have taken a defeat in the past two days. He took a $1 billion strike on Coke which fizzled 6 percent this Tuesday after the companies reported income didn’t live up to the expectations. Worse than that, Coke said that they are not expecting much performance in 2015 also. Investments in Coke is one of Buffett’s largest. He holds almost 400 million shares of the company and his son Howard sits on the company’s board too.
In fact he likes their products too and is often seen having Cherry Coke. For Buffett the pain of loss had started on Monday. Another top holding company IBM has lost $1.3 billion as the stock went down. IBM now is looking for a reboot now after disappointing income and they have shed their chip unit at a major loss. On Monday the stock dropped 7 percent after then news was broadcasted and slid again on Tuesday. It is off almost 13 percent so far this year and Buffett’s company holds almost 70 million shares.
Buffett made a lot of headlines this year for such instances. For example he has invested in British grocery chain Tesco and it has been spoiled. This year it dropped nearly 47 percent this year. But it’s not at all a bad news for Berkshire. Investors are still sticking with their icon. Berkshire stock increased slightly on Monday and Tuesday and is up more than 17 percent this year and had far outpacing the broader market. Coke and IBM are struggling but Buffett’s main position, Wells Fargo shares has increased 11 percent this year despite the current market dip, Buffett is still buying.In an interview he said that earlier this month that he was adding more stocks. The more stocks go down, the more he likes to buy. For more latest business news do visit this space daily.