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By selling the wrong stock, Apple, Warren Buffett’s Berkshire Hathaway has left over $35 billion on the table this year

There’s no two ways about it: Leaving over $35 billion on the table in a single year on a single stock is simply legendarily bad investing.

MacDailyNews

Dec 18

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Warren Buffett’s Berkshire Hathaway clearly sold the wrong stock this year. By selling some 600 million shares of Apple, Buffett’s compan has left over $35 billion on the table so far in 2024. For some perspective, HP Inc. is currently worth $31 billion.

Andrew Bary for Barron’s:
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The Berkshire Hathaway CEO has cut the company’s big stake in Apple by two thirds to 300 million shares. Barron’s estimates that Berkshire Hathaway has left over $35 billion on the table given Apple’s 31% gain this year to $253, comfortably above our estimate of Berkshire Hathaway’s average sale price of $190.
By contrast, Buffett has added to the Berkshire Hathaway’s sizable Occidental stake and it now holds 255 million shares, a 27% stake in the energy company.
Unfortunately, Occidental stock has done poorly this year, falling 21% to $47 after hitting a new 52-week low Tuesday. Barron’s estimates that Berkshire Hathaway paid an average price of about $53 a share, based on the disclosed prices paid for most of the stake.
Barron’s estimates that Berkshire Hathaway has paper losses of around $1.5 billion on the Occidental stake…

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MacDailyNews Take: There’s no two ways about it: Leaving over $35 billion on the table in a single year on a single stock is simply legendarily bad investing.

If Buffett’s calling these nonsensical, losing shots, maybe it’s time he wasn’t. If Buffett’s no longer making the calls, that doesn’t bode well for Berkshire Hathaway’s future.

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