$ 49 billion loss: Buffett's strategy no longer works
The legendary investor Warren Buffett reported on the losses of his holding Berkshire Hathaway in addition to $ 49 billion. the company suffered such serious losses, Buffett said that his business is likely to face even bigger problems in the near future and in many ways they will be associated with the actions of the US Federal Reserve. Because the financial pillow of $ 130 billion is depreciating, and he has no good options for buying.
Is it possible to say that the era of Warren Buffett has come to an end and his investment strategy is no longer working? Let's take a look at the latest things in his company and make a decision.
The total loss of $ 49 billion seems astronomical, but for Berkshire and Hathaw it’s close not the end, but rather the working moment. Warren Buffett honestly reported on them, explaining that most of these losses are associated with the collapse of the stock market , because they hold most of the capital in shares.
This is what Buffett's portfolio looked like before the stock market crashed:
[ 19459008] 83% falls on the TOP-10 companies and the rest, so to speak, on trifles. But even out of this top ten with honor, only Apple came through the market decline that began in February. But the rest of Buffett's favorites fell significantly, and this resulted in the current loss of Berkshire Hathaway.
In the future, the minus on Buffett's portfolio may continue to grow, provided that the stock market goes in search of a new bottom. However, the billionaire has not yet expressed his intention to urgently exit the market. And the point here, it seems to us, is not that he is waiting for the restoration of the value of the shares. After all, his actions largely say the opposite, rather, he simply does not need such steps and remains true to his strategy. About it further.