Warren Buffet Biggest Losers Amongst Billionaires

As per the Bloomberg Billionaires Index, Warren Buffet’s wealth has shrunk by $19 billion dollars (1.4 lakh crore). However, Buffet still remains the 6th richest person on Earth with his net worth still at $70.4 billion dollars. The decline in his wealth might not affect the person himself, but the decisions that have not turned out in his favour have raised questions amongst his followers and the market analysts who cast a doubt over his investment strategies in the recent past.

Sanjiv Bhasin, Executive President at IIFL Securities said that Warren Buffet had lost his edge and is no longer the icon that he once was. He said that Buffet was most bearish and had missed the greatest rally in history. Warren Buffet always advises people to buy stocks and hold on to them forever. Berkshire Hathway, where Warren Buffet is the Chairman, sold its entire stakes in the largest 4 airlines of United States- American, Delta, Southwest, and United. The step was taken by the company since the travel and hospitality industry has been hit hard by the pandemic and the demand for travel has stalled. BUffet’s company has posted nearly $50 billion worth of losses in the first 3 months of the year.

Precision Castparts Corp. is owned entirely by Berkshire, is also bracing for lean times. They are a supplier of aerospace parts but are embracing themselves as the companies making jets are cutting production. Bought for $37.3 billion, making it one of Buffet’s biggest deals, Berkshire had bought Precision Castparts in 2016.

An independent market expert, Ambareesh Baliga, who has worked with companies like Karvy and Kotak group in the past voiced his opinions and said that the strategy of holding a stock forever is a dated practice. It was during those times that things changed over the decades. However, things have changed today and changes happen at a faster rate and businesses and sectors that might look good today might get outdated in less than a decade.