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Warren Buffett Stumbles

Several of Berkshire Hathaway‚??s higher-profile public investments have fallen out of bed recently. And the ‚??Oracle of Omaha‚?Ě has endured several billion dollars in paper losses as a result.

Warren Buffett‚??s investment vehicle Berkshire Hathaway (BRK-B) is having a terrific year.

Berkshire Hathaway is up 17.69% year to date, compared with 6.21% for the S&P 500. And it is also trouncing U.S. small-cap stocks, which I still expect will outperform Berkshire over the next 10 years. I was so convinced of this that I bet $25,000 on it.

Yet, these impressive returns belie that several of Berkshire Hathaway‚??s higher-profile public investments have fallen out of bed recently.

And the ‚??Oracle of Omaha‚?Ě has endured several billion dollars in paper losses as a result.

Although the problems are specific to each company, there is an overarching and worrying trend. Moats or barriers to entry that seemed to be so secure only a few years ago don‚??t seem as wide as they once were.

Or even worse, competitors aren‚??t even bothering to try to cross them.

Read more about Warren Buffett’s recent string of losses at Eagle Daily Investor.

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Written By

Nicolas A. Vardy is the London-based International Economics Correspondent for Human Events.

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archive

Warren Buffett Stumbles

Warren Buffett’s investment vehicle Berkshire Hathaway (BRK-B) is having a terrific year.

Berkshire Hathaway is up 17.69% year to date, compared with 6.21% for the S&P 500. And it is also trouncing U.S. small-cap stocks, which I still expect will outperform Berkshire over the next 10 years. I was so convinced of this that I bet $25,000 on it.

Yet, these impressive returns belie that several of Berkshire Hathaway’s higher-profile public investments have fallen out of bed recently.

And the ‚ÄúOracle of Omaha‚ÄĚ has endured several billion dollars in paper losses as a result.

Although the problems are specific to each company, there is an overarching and worrying trend. Moats or barriers to entry that seemed to be so secure only a few years ago don’t seem as wide as they once were.

Or even worse, competitors aren’t even bothering to try to cross them.

Read more about Warren Buffett’s recent string of losses at Eagle Daily Investor.

Newsletter Signup.

Sign up to the Human Events newsletter

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