Wall Street legend Warren Buffett has always been a proponent of value investing. The Oracle of Omaha’s decades of almost unparalleled success have been built on recognizing when a stock is priced significantly below its inherent worth and then betting big on it. Touting the merits of patience and the long-term effect of compounding returns, Buffett is a master of his profession.
However, even the most successful investors’ portfolios include stocks that go through down periods. It’s probably safe to say that during those times, Buffett, who is known for his sage advice to “be greedy when others are fearful,” might be making plans to increase his holdings if he is convinced a certain stock will eventually recover.
With this in mind, we used TipRanks’ database to pinpoint a pair of equities sitting in Buffett’s portfolio that have been underperforming this year. These are not low stakes; true to form, he has multi-billion-dollar holdings in both, and has been a shareholder of each for over 5 years. Let’s see what Wall Street’s stock experts make of them right now.
Kraft Heinz (KHC)
First on the underperforming Buffett list is a stalwart of the consumer goods sector, Kraft Heinz; one of the largest food and beverage companies in North America and owner of such popular brands as Philadelphia cream cheese, Jell-O, and Velveeta.
While food and drink are essential, Kraft’s stock has definitely underperformed in recent months – KHC is down by 15% year-to-date. That hasn’t phased Buffett, or caused him to reduce his holdings in the stock. The billionaire investing legend has been a shareowner in KHC since 2015, and his firm currently holds 325,634,818 shares worth $10.89 billion. The scale of the holding makes Berkshire the largest owner in Kraft Heinz.
Kraft Heinz can boast of owning 8 brands capable of generating $1 billion-plus annually, and has a global reputation as a trusted provider of the foods and drinks that people love to eat. The company generated approximately $26 billion in total revenue last year, and saw both revenue and earnings show…
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