Warren had a tough year
CHAPEL HILL, N.C. — Last year may have been one of Warren Buffett’s worst years ever.
We won’t know for sure until Berkshire Hathaway BRK.A, +0.26% BRK.B, +0.20%, of which Buffett is chairman and CEO, releases its earnings Feb. 22, at which point we will learn how much the company’s net asset value grew last year. The company’s stock gained only 10.9% in 2019, 20.6 percentage points lower than the S&P 500’s SPX, +0.51% total return. Reached by me Feb. 10, Berkshire wouldn’t comment or confirm when the shareholder letter would be released.
Agree with @LewisBraham that Buffett has too much cash and few buying opportunities. I believe either Jain or Abel helped Warren to buy Apple and sell IBM. Value investing has been trailing large tech stocks for some time.
SP500 has higher performance but also better SD, Sharpe and Sortino. See PortVis (link).
On the other hand, having owned BRK.B since 1999, I do think Warren has done a lot of things well. Of most importance he has brought in new and younger mangers to do things ( buy Apple) he seemed unable to consider.
I have never understood why if he cannot find large companies to buy in toto, he doesn't put more money into other stocks, especially good companies that trip up.
The stock will probably pop when he dies in anticipation of a dividend or larger buybacks.
Most of his dramatic market beating achievements were after the 1974 bear market when he established his KO AMP and other large positions.
He can rebound quickly after dramatic declines as he has the money and the stomach to jump in.
As a long term investment, with a diverse revenue stream, it is a not a bad place to be, but I would not bet the farm. On the other hand, it is not likely to drop 30% overnight on an earnings miss.
* BERKSHIRE HATHAWAY TAKES SHARE STAKE OF 18.9 MILLION SHARES IN KROGER- SEC FILING
* BERKSHIRE HATHAWAY UPS SHARE STAKE IN GENERAL MOTORS CO BY 3.8% TO 75.0 MILLION SHARES - SEC FILING
* BERKSHIRE HATHAWAY UPS SHARE STAKE IN RH BY 41.4% TO 1.7 MILLION SHARES
* BERKSHIRE HATHAWAY UPS SHARE STAKE IN OCCIDENTAL PETROLEUM CORP BY 153.5% TO 18.9 MILLION SHARES
* BERKSHIRE HATHAWAY INC - CHANGE IN HOLDINGS ARE AS OF DECEMBER 31, 2019