Warren Buffett

Warren Buffett disappoints one of the key shareholders

Summary

Buffett Buying Stocks Big – 1982 Letter to Shareholders Description video: Buffett Buying Stocks Big – 1982 Letter to Shareholders\n\nContinuing with summarizing Buffett’s letter to shareholders. This time 1982 when Buffett was buying big and Dalio almost went bust.\n\nWant to […]

Buffett Buying Stocks Big – 1982 Letter to Shareholders

Description video:
Buffett Buying Stocks Big – 1982 Letter to Shareholders\n\nContinuing with summarizing Buffett’s letter to shareholders. This time 1982 when Buffett was buying big and Dalio almost went bust.\n\nWant to know more about what I do? \nFull-time independent stock market analyst and researcher!\nSTOCK MARKET RESEARCH PLATFORM (analysis, stocks to buy, model portfolio)\nhttps://goo.gl/MQG2k5 \n\nInexpensive monthly stock idea and analysis:\nhttps://sven-carlin-research-platform.teachable.com/p/stock-ideas-and-analyses-for-the-small-investor\n\nI am also a book author:\nModern Value Investing book:\nhttps://amzn.to/2lvfH3t\n\nSubscribe to my newsletter for a weekly content overview and articles with stock analyses: https://svencarlin.com\n\nListen to Modern Value Investing Podcast:\nhttps://svencarlin.com/podcasts/\n\nI am also learning a lot by interning with my mentors: dr. Per Jenster and Peter Barklin at the Niche Masters fund.\nhttp://nichemastersfund.com

Warren Buffett disappoints one of the key shareholders

Longtime Berkshire Hathaway shareholder and Wedgewood Partners chief investment officer David Rolf is disappointed with Warren Buffett. In his letter to clients, he announced the sale of his stake in Berkshire after decades as a shareholder. The reason was weak investment in the conglomerate, as well as missed opportunities and bad deals.

Warren Buffett disappoints one of the key shareholders

Berkshire Hathaway shares lagged behind S&P 500.From March 2009 to the present day Berkshire Grade A shares up 323%, while the broad index is up 334%.

The Fund RiverPark / Wedgewood owned 48 thousand Berkshire Class B shares worth about $ 10 million. It should be noted that both Davil Rolf’s performance across the entire bull market is underwhelming. His fund’s annual return excluding fees is 13.6% over the past 10 years. Similar indicator S&P 500 accounts for 14.7%.

Berkshire’s cash grew to over $ 120 billion by the end of Q2 2019, a record for the company. In his annual letter to shareholders, Buffett wrote that he was planning a giant deal, but the parties were unable to agree on a price. Rolf believes this amount of cash is a significant obstacle to growth for the company..

Rolf also became disillusioned with some of Berkshire’s investments.. For example, at IBM and Kraft Heinz.

Buffett revealed his share in IBM (10.7 billion) in the fourth quarter of 2011. By the beginning of 2018, he sold the entire stake. During this time, IBM shares fell more than 20%. Kraft Heinz shares lost about two-thirds of their value.

Rolf also noted that Berkshire missed out on two major opportunities early in the bull market by not investing heavily in the Mastercard and Visa credit card companies.. During the raising period, Mastercard gained more than 1800%, and Visa – 1300%. Berkshire has stakes in both companies, but they make up a tiny fraction of the company’s stock portfolio..