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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.
Paramount Global (PARA)
The Paramount Global Stock Plunge: Buffett’s Toxic Asset
Paramount Global: A Berkshire Hathaway Disaster
It’s no secret – Paramount Global (NASDAQ: PARA) has been a sinking ship in Warren Buffett’s portfolio. The entertainment giant has seen its stock plummet by 19% in 2024, marking a staggering 47% decline over the past year and a jaw-dropping 77% drop in the last five years. The company is floundering under the weight of massive debt, a struggling streaming service, and a crippling strike by Hollywood creatives that hampered its content production.
The Waiting Game: Paramount Global Up for Sale
Desperate times call for desperate measures, and Paramount Global has made one thing clear – it’s on the market. Despite whispers of potential suitors swirling around, no official sale deals have materialized yet, leaving PARA stock in a state of uncertainty and investors on edge. Perhaps Buffett’s continuing investment in the company is a silent bet on a future sale that could revive its share price. However, the Oracle of Omaha remains tight-lipped about his strategic moves in the market, rarely divulging insights about individual stocks, except for a rare critique during Berkshire Hathaway’s annual meeting regarding Paramount Global’s dividend cuts.
Berkshire Hathaway’s Stake in Paramount Global
Currently, Berkshire Hathaway holds a hefty 63.32 million shares of PARA stock, valued at a substantial $750.81 million, constituting a mere 0.2% slice of its vast investment pie. As the market eagerly watches and waits for the next turn of events, one thing remains certain – even the great Warren Buffett isn’t immune to the occasional misstep in the turbulent waters of Wall Street.
Joel Baglole, a seasoned business journalist with a rich pedigree of experience spanning two decades, remains cautiously optimistic about the intricacies of the financial world. With a keen eye for market dynamics honed during his tenure at The Wall Street Journal and contributions to esteemed publications such as The Washington Post and the Toronto Star, Joel brings a wealth of insight and analysis to the table, guiding investors through the peaks and troughs of the ever-evolving investment landscape.
