Warren Buffett’s Holdings Might Lose a Whopping $80 Billion Because of This Global Pandemic
Warren Buffett is among the world’s wisest and most successful investors ever but that doesn’t mean that he is totally immune to the sways of the market. Case in point: the largest equity investments of his holdings company Berkshire Hathaway is feared to lose more than $80 billion as the market faces a downturn.
Billions in Losses
This is thanks to the panic and concerns that the coronavirus outbreak brought with it. As a result, the value of Berkshire Hathaway shares in industry giants like Coca-Cola, Apple, and Delta Airlines were eviscerated.
The company’s top 10 stocks reportedly saw a 43& share-price decline from late February to today. It was in February that the sell-off, supposedly motivated by the coronavirus, began.
It’s also worth noting that the situation remains grim despite the Federal Reserve’s attempts to give the economy a boost. This move reportedly implies that the central bank saw the possibility of an economic crisis happening as businesses and borders close in response to the spread of the coronavirus.
Going into specifics, Berkshire Hathaway’s 5.6% stake in the tech giant Apple lost about $27 billion of its value as the stock’s price plummeted by 32%. Another one of Berkshire’s largest investments, Bank of America, saw a huge decline (48%) leading to a loss of $15 billion for Buffett’s company.
The Buffett-led company has also been affected by Delta Airlines stock’s whopping 63% decline. The major American airline’s troubles are a direct result of the travel restrictions on the advent of the coronavirus spread across the globe. Among Berkshire Hathaway’s holdings, it seems that Kraft Heinz emerged as the relative ‘best performer’ as its share price only went down by 22%.
Not surprisingly, the American stock market isn’t the only one dealing with huge falls in recent times. Investors around the world are reportedly already fearing how the economy might be destroyed with governments proving to be unable to put a stop to this possibility.
Thus, central banks in numerous countries have elected to cut interest rates in an attempt to boost the economy. Among those to do so is the Bank of England, which cut rates to an all-time low and set on a £200 billion ($234 billion) money creation scheme.
Coronavirus infections have breached the 400,000 mark and have claimed the lives of over 18,500 people. Multiple teams of experts are now racing against time to develop a vaccine for the new illness.
More in Smart Investments
Kourtney Kardashian Has Been Keeping a Huge Secret About Motherhood
Together with her family, Kourtney Kardashian has lived her life in front of the public eye for over a decade. All...February 23, 2021
The ‘Dark’ Story Behind Guy Fieri’s Iconic Hairstyle and Why He Can Never Change It
Celebrity chef Guy Fieri is practically the face of American food television’s rowdy and mass-market side. Throughout his years on the Food...February 17, 2021
Is Your Debt Ruining Your Life? Here Is What You Can Do
Debt can become overwhelming to the point that it can begin crushing your life. You could begin to develop the impression...February 14, 2021
A Sneak Peek into the Astonishing Life of Late Legendary Designer Alexander McQueen
Years after his passing, Alexander McQueen’s legacy and influence is still alive and well in the fashion industry. The late designer...February 5, 2021
The World’s Largest Private Jet Has The Most Unbelievable Features — Look Inside!
It’s not unheard of for wealthy businessmen to splurge millions on a luxury penthouse atop a high rise in the city....January 27, 2021
How Taylor Swift Made $26 Million for Endorsing this Controversial Brand
Multiple images changes and genre transitions later, Taylor Swift is still among the best-selling pop stars in mainstream music. Even more...January 21, 2021
How this Fitness Maven Got Over Losing Her Dream Job at 40 to Build a Successful Global Business
People usually spend their 20s and 30s climbing the work ladder and land a stable job position for the latter part...January 13, 2021
Pay Your Mortgage Early or Start Investing? Your Choice Would Boil Down to this One Factor
So, you’ve bought a house and knocked off an item on the list of your long-term goals. Now, your next focus...January 4, 2021
How Tekashi 6ix9nine Got a $5 Million Performance Deal When Live Concerts are Still Impossible amid the COVID-19 Pandemic
With a contagious virus still going around without a known vaccine to fight it, events that gather a large group of...December 30, 2020