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Warren Buffett’s Berkshire Hathaway Lost $ 4.3 Billion In One Day On Big Business Bet

The Oracle of Omaha is revered for its bargain-based buying strategy, especially with investments in family brands and businesses with consistent cash flow. However, Berkshire’s staple consumer holdings haven’t necessarily paid off in recent years as consumers increasingly turn to healthier food and drink options. Despite grim 2019 projections for both companies, Buffett defended his investments. He told CNBC last year, “If you take Heinz Ketchup, it’s very, very, very hard to take shares out of Heinz Ketchup. It’s hard to take shares of Philadelphia Cream Cheese… It’s still very. , very good companies. “

The losses of Kraft Heinz will likely have an impact on the profits of Berkshire Hathaway. Barclays analyst Jay Gelb, for example, cut his earnings estimates for Berkshire in half, although he did not lower the price target. Overall, Berkshire faces increasing pressure as its stock has not particularly outperformed average S&P 500 returns over the past decade.

Investors are eagerly awaiting Berkshire’s fourth quarter earnings report and Buffett’s annual letter to shareholders due on Saturday.

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