Just yesterday, we mentioned how Warren Buffett lost a little more than $1 billion on his IBM investment at the opening bell. Unfortunately, things also took a turn for the worse today and he dropped an additional $1.09 billion due to another one of his favorite companies.
On Tuesday, Coca-Cola posted third-quarter earnings revenue and fell short of current expectations. They even warned of further currency headwinds. Because of this, Coca-Cola shares dropped significantly in value and Warren Buffett and Berkshire Hathaway have so far lost $1.5 billion on their investments.
Shares of Coca-Cola are the second-largest investment in the Berkshire Hathaway portfolio. They have been one of his longest held holdings and have been part of the portfolio for decades. He left the board of Coca-Cola in 2006, but in 2010 his son Howard took his seat.
At this time, Berkshire Hathaway owns 400 million shares. At one point, shares of Coca-Cola were down $2.72, causing the loss of $1.09 billion. When you add that to the loss yesterday that closed at $494 million – Buffett got more than half of his money back – we’re talking $1.5 billion worth of losses taking place in the last two days. It’s obviously been a rough week for Warren Buffett, but unfortunately for him it’s only Tuesday.
In April, in an interview on CNBC, Buffett said “I love Coke. I love the management, I love the directors.”
Anyway, that’s about all for now. Buffett has suffered a rough week so far, but the Oracle of Omaha will bounce back. He always does.