Warren Buffett often talks about the importance of holding onto stocks despite the many ups and downs they may experience, simply because that’s the nature of value. Investors need to persevere and ride the waves, says the sage, because stocks can sometimes require just that kind of patience.
That being said, it could be a test of the Omaha Investment Brain Trust’s patience to see how low some of their favorites have fallen. BRK.B Berkshire Hathaway’s by far largest holding, Apple AAPL, remains there despite China’s threat to Taiwan Semiconductor, Tim Cook’s number one chip supplier.
Meanwhile, while it’s happening in Asia, here are Warren and Charlie’s 4 worst positions. It is based on the decline from the stock’s last high on the weekly chart to the current price. Whatever the underlying reasons, this is serious negative price action:
Liberty Latin America (NASD: PURPLE) -66%
Liberty Latin America Weekly Price Chart, 8 7 22.
Based in Bermuda, this communications company operates in Chile, Puerto Rico, the Caribbean and various locations in Latin America. Parcel services are offered to households and businesses with video, broadband internet and mobile phones. Note that Liberty Latin America has traded below this bearish line since mid-2019, which is a long time even in Omaha.
RH (NYSE:RH) -64%
RH weekly price chart, 8 7 22.
This specialty retail company is headquartered in Corte Madera, California. In a press release dated June 29, 2011, CEO Gary Friedman put it this way: “The deteriorating macroeconomic environment has resulted in lower demand than anticipated in our previous guidance and we are updating our outlook, particularly for the second half of the year. Year.
“Given the macroeconomic conditions and our current business development, we provide the following second quarter and full year outlook, which assumes demand will continue to decline through the end of FY2022: Fiscal 2022 net revenue growth ranges from (2 %) to (5%) with an Adjusted Operating Margin in the range of 21.0% to 22.0%.
NU NU Holdings (NYSE:NU) -62%
Nu Holdings Weekly Price Chart, 8 7 22.
To say the least, Nu Holdings broke the weekly downtrend line and appears to be showing the very beginnings of a recovery. Brazil’s digital bank may have gone public at the wrong time when interest rates started to rise sharply, making interest-sensitive stocks a problem.
Snowflake (NYSE:SNOW) -59%
Snowflake weekly price chart, 8 7 22.
Snowflake is a software applications company that describes itself as a “globally distributed company with more than 3,000 employees in 20 countries”. The company’s earnings per share are down 20.90% this year, and it doesn’t have a “last 5-year” EPS record yet, as it’s not that long ago. One thing Berkshire Hathaway is very likely to like: Snowflake has no debt, long-term or otherwise. Now if only the share price would stop falling.
(This list omits Paramount Global’s down 75% from last week’s high to the current price — because that’s an extreme type of outlier.)
No investment advice. For educational purposes only.