2 Stocks That Warren Buffett Sold Too Early
During the pandemic, legendary investor Warren Buffett and his company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) sold many of their bank stocks, as the Oracle of Omaha wanted to rightsize his portfolio and remove some of the potential risks associated with the banking sector early on in the pandemic. But many of these moves don't look so great right now, with much of the banking sector emerging from the pandemic in even better shape than before. Obviously, Buffett has been investing in banks a long time and clearly knows his stuff. He's also managing a $308 billion portfolio, so he has to think about losses and risk in a much more conservative way than your typical retail investor investing a few hundred or a few thousand dollars.
Still, there are two moves Buffett made during the pandemic that stick out to me and continue to look like stocks that Buffett and Berkshire should not have sold -- at least so early.
In the first quarter of 2020 when the pandemic first started to emerge, Berkshire cut its stake in Goldman Sachs (NYSE: GS) by 84% and then exited its position in the investment bank entirely in the second quarter of 2020. During Q1, Goldman traded at a high of nearly $250 per share and a low of $138 per share. Goldman has since traded at all-time highs and now trades at $408 per share.
Source Fool.com
