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Warren Buffett, through his esteemed holding company Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B), wields a hefty portfolio valued at over $370 billion. While the portfolio houses numerous triumphs held for eons, it also harbors some stinkers. From enduring disappointments to recent slips, Buffett’s strategic bets have taken a hit.
Unlike a diversified spread, Buffett’s portfolio leans heavily on a few colossal wagers, rendering it vulnerable to downturns in key holdings. Nevertheless, the Oracle of Omaha preaches against obsessing over short-term market gyrations, instead advocating for long-term stock performance evaluation. Here’s a closer look at the struggling gems in Buffett’s crown:
Apple (AAPL)
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At the cornerstone of Buffett’s portfolio lies his mammoth holding in Apple (NASDAQ:AAPL). Berkshire sports a colossal 905.56 million AAPL shares valued at $153.83 billion, constituting an eye-popping 41.5% of its stash. Surpassed only by mutual funds like Vanguard, Berkshire’s AAPL bet has tumbled 8% this year, trailing the benchmark S&P 500 as one of its laggards. The plunge is pinned on sluggish iPhone sales, especially in China, aggravated by a U.S. antitrust lawsuit.
As analysts hold out for an Apple rebound, Berkshire’s hefty AAPL position serves as a stark reminder of the perils tied to concentrated investments.
Charter Communications (CHTR)
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Plunging even deeper is Charter Communications (NASDAQ:CHTR), down a whopping 28% year-to-date. This long-standing underperformer, shunned by 20% over five years, constitutes a modest 3.82 million shares valued at $1.09 billion within Buffett’s coffers, representing a mere 0.3% of Berkshire Hathaway’s cache. Despite Charter’s dominance as America’s largest cable operator and primary pay TV provider, woes from its Spectrum internet division have been a drag, losing customers and profits.
In the latest quarter, Charter bled 61,000 internet subscribers, driving profits to a dismal $7.07 per share, notably below market forecasts.
