Tags: Buffett | loss | IBM | Coke

Buffett Suffers $2.36 Billion Paper Loss on Drops in IBM, Coke Stock

By    |   Wednesday, 22 October 2014 09:41 AM

Warren Buffett's Berkshire Hathaway took quite a hit from the falling share price of IBM and Coca-Cola over the past two days — to the tune of $2.36 billion.

Both stocks cratered after the companies reported weak third-quarter earnings. IBM lost 10.3 percent over Monday and Tuesday combined, while Coke fell 6 percent Tuesday, the day on which it reported.

Berkshire held approximately 70.2 million IBM shares as of June 30, according to CNBC, which would put its loss at $1.32 billion for the last two days. Berkshire, which held approximately 400 million shares of Coke as of June 30, lost $1.04 billion on that stock Tuesday.

To be sure, the losses weren't enough to send Berkshire's shares down. The company's stock climbed 1.4 percent in the last two days. IBM and Coke represent only a fraction of Berkshire's $340.5 billion market capitalization.

Buffett didn't comment on the IBM and Coke moves. But in April, he told CNBC after another weak IBM earnings report that he hadn't "soured" on the stock.

And as for the beverage company, he told CNBC in April, "I love Coke. I love the management, I love the directors."

Morningstar analyst Greggory Warren offers a mixed view of Buffett's firm.

"While Berkshire is likely to continue to putting money to work in value-creating projects in the near to medium term, much as it has in the past, we think the huge sums of cash that it generates and maintains on its balance sheet will ultimately limit its ability to produce outsize returns," he wrote on Morningstar.

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Warren Buffett's Berkshire Hathaway took quite a hit from the falling share price of IBM and Coca-Cola over the past two days — to the tune of $2.36 billion.
Buffett, loss, IBM, Coke
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2014-41-22
Wednesday, 22 October 2014 09:41 AM
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