Ace billionaire investor whose investment ideologies are being followed by many has toppled severely to emerge as the biggest loser among top billionaires in the world for calendar year 2020. Yes you guessed it right we are talking about none other than Berkshire Hathaway owner Warren Buffet.
This is even as the US equities gained a huge 40% during the period, where most of his investments are parked.
In accordance with the Bloomberg Billionaires Index, Warren Buffett's wealth has seen erosion in value by Rs. 1.4 lakh crore or $19 billion, but despite this he still manages to hold the rank of the sixth richest person globally with a net worth of $70.4 billion.
So, even though the loss does not matter to him on an individual basis, analysts as well as followers who abided by his rules given the sharp decline in Buffett's wealth as well as some of his recent decision's not turning positive for him have begun to raise a question mark on his strategy.
"Warren Buffett is no longer the icon that he was. In fact, he was most bearish and still is and he has missed the greatest rally in history. I will make no bones about it," Sanjiv Bhasin, Executive Vice-President at IIFL Securities, told ET Now over an interview.
While Buffett is largely an advocate of value investing and recommends on buying and holding stocks forever. He given the free fall in the market during the first quarter of this financial year was forced to dump some of his biggest investments including those in the aviation sector among others.
The lengendary investor divested his entire stake in all of the 4 largest air carriers in the US as demand for travel came to an abrupt halt on account of coronavirus led travel restrictions. And consequently, he posted a loss to the tune of $50 bn in the first 3 years months of the ongoing year.
And belying Buffett's investment strategy of holding the stock forever, market expert Baliga said this is an outdated method."Earlier, things changed over a couple of decades. Now the speed of change has quickened. Sectors or businesses that look good today may be outdated in less than a decade. So you cannot hold a stock forever and have to monitor it regularly to take a call," Baliga told ETMarkets.com.