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Buffett’s Sell-Off Affecting the Economy

Warren Buffett is making waves across the financial industry by selling off massive amounts of stock through his conglomerate Berkshire Hathaway. These moves are dramatically affecting the stock market and the values of the companies he owns.

On Friday, May 15, the Securities and Exchange Commission released documents that Buffett’s Berkshire Hathaway unloaded 84% of its shares in Goldman Sachs, making its value immediately drop from $2.8 billion to less than $300 million. He also sold their entire stake in Philips 66 and Travelers.

This is the latest in a slue of stocks Buffett has unloaded. In March, Berkshire reported selling off all of its shares of American Airlines, United Airlines, Southwest Airlines, and Delta Air Lines, worth $6.1 billion collectively.

Buffett has also sold some of his stake in Sirius XM, Synchrony Financial, JP Morgan, and Teva Pharmaceuticals.

Since, Berkshire Hathaway’s stock has dropped by nearly 20% of its value since February 2020. Buffett’s entire portfolio is now worth $54.5 billion. The company was dramatically affected by the coronavirus sell-off, with its total value dropping by nearly 30%. While the company made $1.8 billion in the first quarter of 2020, the stock dropped itself dropped by almost 50 points. This is the lowest the stock has been valued since July 2017.

According to Forbes, Berkshire Hathaway is the third-largest publicly traded company in the world. They are also considered the largest financial services company by revenue in the world. Time will tell if they are able to maintain these titles.

Sources

Lin, E. (2020, May 15). Warren Buffett’s Berkshire Hathaway Sold Goldman Sachs and Sirius Stock. MarketWatch. https://www.marketwatch.com/articles/warren-buffett-berkshire-hathaway-sold-goldman-sirius-stock-phillips-travelers-51589576341?mod=newsviewer_click

U.S. News. (2020, May 12). The Complete Berkshire Hathaway Portfolio. https://money.usnews.com/investing/stock-market-news/slideshows/the-complete-berkshire-hathaway-portfolio

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