Warren Buffett is having a good year with the S&P 500 stocks – mostly – this is the market of its kind. But he is also suffering for his fair share blowup.
In the top holding six Berkshire HathawayIts (BRKB) US-listed positions, including financial institutions, have dropped 35% or more this year. Holdings now (NU), technology game Snowflake (SNOW) and consumer discretion Ordinary motor (GM), says an investor’s business daily analysis of data from S&P Global Market Intelligence and Marketsmith.
It is true that Buffett’s Berkshire Hathaway has grown by more than 12% this year. This drove the S&P 500 to a 14% drop in that time. But it is also important to note that 21 of Berkshire’s 50 U.S.-listed positions, or more than 40%, lag behind the S&P 500 a year. And at some large intervals.
“Warren Buffett is an investor who has supported the conventional approach of many investors and consistently used weakness as an opportunity,” said Bespoke Investment Group. “His actions in the first quarter were a perfect example.”
Looking at Buffett’s victims
Buffett is closing the ball with some of his big power bets. But some of those homers have covered his misfire.
What is the biggest bumper in a stock buffet? This is Snowflake, a cloud-computing software company. Shares have fallen more than 57% this year alone. That’s not a big deal for Berkshire, which owns only $ 970 million in stock. Berkshire’s largest holdings compare to বিশাল 131 billion in huge shares, Apples (AAPL). Berkshire Hathaway owns only 2% of Snowflake’s outstanding shares. It’s also important to note that Apple shares have fallen about 16% this year, or worse than the S&P 500.
And it’s a similar story in a sector that’s more common than Warren Buffett’s stock: financial. Nu Holdings, a digital finance firm that operates mostly in South America, is also not operating this year. It provides credit and debit cards to many emerging market countries such as Brazil, Mexico and Colombia. But shares of Nu Holdings have fallen more than 56% so far this rough year. That’s far worse than Berkshire Hathaway’s average 7.9% loss in all US-listed locations.
GM: A painful S&P 500 Warren Buffett stock
Automaker GM is still one of Buffett’s most notable misfires this year. This is his only major position valued at more than 2 billion which is 35% or less this year.
It has been a rough ride for GM investors this year. Shares are down 35% as investors worry about the cost of transforming the company into an electric vehicle manufacturer. The company’s profits are expected to decline by about 1% this year and another 3% in 2023. Again, this is not a huge position for Berkshire Hathaway, for only 4% of the company.
But for now, Berkshire Hathaway investors want to focus on the winners. And there are some big ones. Berkshire Hathaway’s position in the oil company is $ 9.2 billion Occidental Petroleum (OXY) has already more than doubled this year. Buffett owns more than 15% of the company. And has 26.7 billion in shares Chevron (CVX) has risen nearly 50% this year.
With winners like them, you won’t hear many complaints about losing the S&P 500.
Worst Buffett stock so far this year
More than 40% of Berkshire Hathaway’s US-listed position lags behind the S&P 500
|Institution||Symbol||Location value (6 million)||Sector||Date% ch from stock year.|
|Snowflake||(Snow)||$ 970.0||Information technology||-57.0%|
|Floor and decor||(FND)||341.6||Consumer considerations||-44.5|
|Ordinary motor||(GM)||2,360||Consumer considerations||-35.0|
Sources: IBD, S&P Global Market Intelligence
Follow Matt Krantz on Twitter.mattkrantz
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