This Is How Much Warren Buffett's Company Missed Out On By Dumping Costco Stock In 2020
Portfolio Pulse from Bibhu Pattnaik
Warren Buffett's Berkshire Hathaway Inc. sold its shares in Costco Wholesale Corporation in 2020, missing out on approximately $1.5 billion in gains as Costco's stock soared up to 127% since the sale. Berkshire Hathaway began investing in Costco in 1999, accumulating 4.3 million shares by mid-2020. Buffett has acknowledged the sale as a potential mistake during Berkshire's 2021 shareholder meeting.
January 27, 2024 | 9:20 pm
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NEGATIVE IMPACT
Berkshire Hathaway's sale of Costco stock in 2020 resulted in missing out on significant gains as Costco's stock price increased substantially post-sale.
The missed gains from the sale of Costco shares by Berkshire Hathaway are likely to be viewed negatively by investors, potentially impacting Berkshire's stock price in the short term. However, Berkshire's large and diverse portfolio may mitigate the impact.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Costco's stock has experienced significant growth, climbing between 88% and 127% to near-record highs since Berkshire Hathaway sold its shares.
The article highlights the strong performance of Costco's stock since Berkshire Hathaway's sale, which could continue to attract investor interest and potentially drive the stock price higher in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100