Berkshire Hathaway Inc. (NYSE:BRK.B) is among the many holding companies that have experienced the full effects of the sickening drop in oil prices this year, which has seen a number of energy stocks lose substantial amount of value. Despite receiving massive hits in the energy sector, Bloomberg’s Noah Buhayar notes that the firm still enjoyed a fair amount of success on entities like DirecTV and DaVita HealthCare Partners Inc. (NYSE:DVA).
DIRECTV (NASDAQ:DTV) and DaVita according to Buhayar might have done more than enough in offsetting losses that billionaire, Warren Buffet, could have incurred this year. Both units are already up by 2% the average S&P 500, with a net worth of $500 billion.
“What you are seeing here is something’s that did quite well and a couple of things that did not. We all have perfect insight but the net result is that it looks like they are going to fall short of the S&P 500 this year,” said Mr. Buhayar.
Some of the biggest wins for Buffet this year through his holding company Berkshire Hathaway have come from the likes of Visa Inc. (NYSE:V) DaVita-and WABCO Holdings Inc. (NYSE:WBC). It still unclear as to how long Berkshire Hathaway Inc. (NYSE:BRK.B) will continue holding stakes in some of the energy stocks as the downturn continues to be a concern. Some of the other notable investments by Warren Buffett that have also not performed to expectation this year include International Business Machines Corp. (NYSE:IBM) and The Coca-Cola Co (NYSE:KO).
Berkshire Hathaway Inc. (NYSE:BRK.B) is made up of a $120 billion stock portfolio that is managed by Ted Weschler and Todd Combs with Buffet also believed to be involved in key decision making on investments. Earlier in the year, Weschler and Combs bought into Chicago Bridge & Iron Company N.V. (NYSE:CBI) that was on a decline clearly showing they might continue holding long on some of the energy investments.
“The trend over the last couple of years has been for Weschler and combs to hold things for a long time. […] Sometimes their strategy is not actually to ditch a losing holding it’s to double down because they think they know what it is worth, and suddenly it is on sale,” said Mr. Buhayar.
Buhayar expects Buffet to continue buying and investing in other companies heading into 2015 despite incurring big losses in 2014.
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