- Warren Buffett’s Berkshire Hathaway doesn’t hold the right stocks to thrive during the coronavirus pandemic, “Mad Money” host Jim Cramer said on Tuesday.
- The billionaire investor’s conglomerate owns big stakes in companies such as Coca-Cola, Wells Fargo, and Bank of America that have lagged the market this year.
- “I don’t want to bet against the great one,” Cramer said. “But that portfolio is not a great portfolio.”
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“I feel bad that America’s best have been crummy,” Cramer replied to a question about the famed investor’s conglomerate underperforming the market this year.
Berkshire’s stock price flatlined in the second quarter, whereas the S&P 500 soared about 20%, its biggest percentage gain since 1998.
Several of Berkshire’s biggest holdings have failed to impress during the pandemic, Cramer said. Coca-Cola has been “just ok” and Wells Fargo has been a “big disappointment.”
“It is not setting up as being a great time for Berkshire,” the former hedge-fund manager said. “I don’t want to bet against the great one. But that portfolio is not a great portfolio.”
During the show, Cramer highlighted several lockdown winners including Zoom, PayPal, Netflix, Shopify, and Etsy.
However, Berkshire’s portfolio is weighted towards financial services rather than technology. Key holdings such as Bank of America, American Express, and JPMorgan Chase have lagged the market this year.
Buffett is unlikely to shake things up despite that fact, Cramer said.
“He cares a lot about taxes and therefore he’s not gonna make the change,” he said, referring to Buffett’s aversion to buying and selling shares.
However, Cramer did give Buffett credit for Berkshire’s biggest holding – a tech stock that hit an all-time high in June.
“He did buy Apple, right,” he said.
Here’s Berkshire’s stock chart for this year:
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