When Warren Buffett loses $1.5 billion in a market drop, it makes big headlines – and now he’s had two big drops in one week. Buffett has always stood behind both IBM and Coca-Cola, as they make up two of his top three largest investments. This week, however, both companies took a hit on the market and Warren took a significant hit too.
NBC News shares that Warren Buffett’s $1.5 billion loss happened due to IBM posting disappointing earnings on Monday. Then on Tuesday Coca-Cola posted bad news as well, and the two company’s drops resulted in some big losses for the Berkshire Hathaway CEO.
The drop in IBM stock price resulted in a $1.06 billion loss Monday for Buffett, and an additional decline on Tuesday stole another $494 million from the investment guru’s pocket. The Coca-Cola drop is said to have resulted in Buffett losing another $1.09 billion on Tuesday alone.
Reports indicate that Buffett’s portfolio holdings put Wells Fargo in the top spot, Coca-Cola second, and IBM third in terms of volume of dollars invested. The “Oracle of Omaha” held about 70.2 million IBM shares as of the June 30 Securities and Exchange Commission filings. Despite a rough year for the company, in the past Buffett has said he has no plans to pull his investments from the company.
Though losing that much in only 24 hours or so had to sting, it’s not as if Buffett hasn’t had his big days as well. Earlier this year, Forbes noted that Berkshire Hathaway went up in value significantly as March began, adding another $1 billion to Buffett’s net worth. The stock value shifted a bit as the day continued, but the early part of the year was a strong one for the investor and his company.
Despite Warren Buffett’s $1.5 billion loss, he still ranks among the richest men not only in the United States but around the world. The Forbes list of 2014 billionaires places Bill Gates as the top dog in the world, with a net worth of $76 billion when the list was compiled.
Mexico’s telecom guru Carlos Slim Helu came in second in the world, with Spanish Zara retailer Amancio Ortega in third. Buffett then is in fourth place in the world, second in the U.S., with an estimated $58.2 billion tied to his name. Despite Warren Buffet’s $1.5 billion loss this week via IBM, he’s not about to drop off the Forbes billionaires list any time soon. Chances are he will bounce back stronger than ever, but he just may need to make some adjustments along the way.
[Image via The Times UK]