Buffett Stock Picks Having a Tough Year so far in 2015

Warren Buffet’s Berkshire Hathaway has had an amazing 50-year run, with its market value per share growing 1,826,163 percent. That’s a compounded annual gain of 21.6% over that period, compared to 9.9% for the S&P. This year, however, several of Berkshire’s top stocks are significantly underperforming. Buffet has remained heavily invested in blue chip companies, many of which have been losing value, and stayed out of newer stocks like Amazon and Netflix. Companies like IBM and Walmart, both among Berkshire’s top ten holdings, have been underperformers. While Berkshire has had some winners this year and, in any event, relies less on its portfolio as it continues to acquire businesses, 2015 has been a noticeably bad year for the Oracle of Omaha’s stock picks. However, the author notes that one difficult year does not mean that we should be counting Buffett out or “rewriting the market history books” given that Buffett has amassed one of the very best long term records of success in the market and a fortune of $62 billion dollars.

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