Warren Buffett often talks about the importance of holding onto equities despite the many ups and downs they may experience because that’s just the nature of value. Investors must hold on and ride the waves, it is said by the sage, because sometimes the stock may require just that kind of patience.
That said and understood, it may be testing the patience of the Omaha investment brain trust to see how far down certain of their favorites have fallen. Berkshire Hathaway’s
biggest position by far, Apple
, hangs in there, despite the threat from China to Taiwan Semiconductor, Tim Cook’s number one chip supplier.
In the meantime, while that plays out in Asia, here are Warren and Charlie’s 4 worst performing positions. It’s based on the drop from the stock’s most recent peak on its weekly chart to its current price. Whatever the fundamental reasons may be, this is some serious negative price movement:
Liberty Latin America (NASD:LILA) -66%
Liberty Latin America weekly price chart, 8 7 22.
This Bermuda-based communications company operates in Chile, Puerto Rico, the Caribbean and different locations around Latin America. Bundled services are offered to homes and businesses with video, broadband internet and mobile phone available. Note that Liberty Latin America has been trading below that downtrend line since mid-2019, a long time, even in Omaha.
RH (NYSE:RH) -64%
RH weekly price chart, 8 7 22.
This specialty retail firm is headquartered in Corte Madera, California. In a news release dated 6/29/2011, CEO Gary Friedman put it this way, “The deteriorating macro-economic environment has resulted in lower than expected demand since our prior forecast, and we are updating our outlook, particularly for the second half of the year.
“Taking into account the macro-economic conditions and our current business trends, we are providing the following outlook for the second quarter and full year, which assumes demand will continue to soften during the remainder of fiscal 2022: Fiscal 2022 net revenue growth in the range of (2%) to (5%), with adjusted operating margin in the range of 21.0% to 22.0%.”
Holdings (NYSE:NU) -62%
Nu Holdings weekly price chart, 8 7 22.
At least it could be said that Nu Holdings has broken above the weekly downtrend line and appears to show the very beginnings of a bounce. The Brazilian digital bank perhaps IPO’ed at just the wrong time as interest rates began to rise significantly, making it a tough go for an interest rate-sensitive equity.
Snowflake (NYSE:SNOW) -59%
Snowflake weekly price chart, 8 7 22.
Snowflake is a software application company that calls itself a “globally distributed enterprise with more than 3,000 employees working in 20 countries.” The company’s earnings per share this year are off by 20.90% and there is no “past 5 year” EPS record yet as it hasn’t been around that long. One thing that very likely appeals to Berkshire Hathaway: Snowflake has no debt, long-term or otherwise. Now, if the stock price would just stop going down.
(This list leaves out Paramount Global’s minus 75% from its most recent weekly peak price to its current price — because it’s an extreme kind of outlier.)
Not investment advice. For educational purposes only.