Warren Buffett Trusts in These 5 Stocks Despite Losses

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In this article, we discuss the stocks Warren Buffett trusts despite suffering losses. If you want to read about some more stocks in Buffett’s portfolio, go directly to Warren Buffett Trusts in These 10 Stocks Despite Losses.

5. Celanese Corporation (NYSE:CE)

Berkshire Hathaway’s Stake Value: $1.07 billion

YTD Percentage Decline in Share Price as of August 21: 33.66%

Number of Hedge Fund Holders: 36

Celanese Corporation (NYSE:CE), formerly known as Hoechst Celanese, is an American technology and specialty materials company that operates as a global chemical leader in the production of differentiated chemistry solutions used in most major industries and consumer applications. Warren Buffett raised his stake in Celanese Corporation (NYSE:CE) by 17% in Q2, holding 9.15 million shares worth more than $1 billion.

On August 2, Barclays analyst Michael Leithead lowered the price target on Celanese Corporation (NYSE:CE) to $165 from $190 and kept an ‘Overweight’ rating on the shares. The analyst thinks the second quarter represented another solid quarter for the company, with the one negative in the quarter being its acetate tow margin weakness.

Among the hedge funds tracked by Insider Monkey, Lyrical Asset Management is a notable stakeholder of Celanese Corporation (NYSE:CE), with roughly 1.3 million shares worth $152 million. Overall, 36 hedge funds were bullish on the stock at the end of June 2022, with collective stakes amounting to $1.82 billion.

Here is what Vltava Fund had to say about Celanese Corporation (NYSE:CE) in its Q1 2022 investor letter:

“We then used the money freed up to, among other things, open three new positions. The stock price declines during the Russian invasion brought a lot of good prices to the market. Out of all the possibilities we considered, we picked the stocks of Celanese (CE).

Celanese is the world’s largest producer of acetic acid and its chemical derivatives, including vinyl acetate monomers and emulsions. Their applications are used in a wide range of industries, such as automotive tobacco, coatings, construction, energy, telecommunications, food, and medical. Celanese recently closed the acquisition of a large part of DuPont’s business, which will make Celanese an even bigger player in the industry while reducing the cyclicality of its business. The acquisition is quite large and should deliver significant value to shareholders that in our view is not at all presently reflected in the share price. Celanese is a business that stands more or less aside from the main interests of most investors, but it is a company with very high returns on capital, strong free cash flow, and historically very efficient resource allocation.”

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