Some of Warren Buffett’s favourite stocks are having a rough month, notes @ReformedBroker.
The “Oracle of Omaha” is one of the largest shareholders of IBM, which reported disappointing third-quarter earnings results on Monday.
Since the beginning of October, shares of IBM have tumbled about 14%.
Buffett’s Berkshire Hathaway last held 70.1 million shares of IBM, according to regulatory data compiled by Bloomberg. This suggests the value of Buffett’s stake has fallen by $US2.1 billion this month.
Another big Buffett holding that has been a huge disappointment is U.K.-based supermarket chain Tesco.
According to CNBC, which cites a Buffett letter, Berkshire Hathaway held 301,046,076 shares, or a 5% stake, of Tesco shares listed in London. He admitted last week on CNBC that his investment in Tesco was a “mistake.” He also significantly cut the stake back to less than 3%, the CNBC report said.
Year-to-date, shares of Tesco have fallen about 44%. Before he pared back his stake, he had lost about $US788.7 million on the stake.
Then, one of Buffett’s most iconic holdings, Coca-Cola, gave a profit warning today. The beverage company also only saw its worldwide volume grow by only 1% in the third quarter.
The stock fell more than 6% on the news.
Berkshire Hathaway, which has been a long-time investor, owns 400 million shares of Coca-Cola. His Coca-Cola position has lost about $US1.1 billion in value today.
Here are some charts:
Here’s how IBM has performed since October 1:
Shares of Tesco have fallen more than 44% this year:
Here’s Coca-Cola’s chart after it reported third-quarter results: