{"id":190470,"date":"2021-02-27T20:14:08","date_gmt":"2021-02-27T17:14:08","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/warren-buffett-blames-11-billion-loss-on-a-mistake\/"},"modified":"2021-02-27T20:14:08","modified_gmt":"2021-02-27T17:14:08","slug":"warren-buffett-blames-11-billion-loss-on-a-mistake","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/warren-buffett-blames-11-billion-loss-on-a-mistake\/","title":{"rendered":"#Warren Buffett blames $11 billion loss on a ‘mistake’"},"content":{"rendered":"

“#Warren Buffett blames $11 billion loss on a ‘mistake’<\/strong>”<\/p>\n

\n

Even oracles make mistakes. <\/p>\n

Berkshire Hathaway earned $42.5 billion in 2020, but on Saturday, CEO Warren Buffett admitted the conglomerate\u2019s results for the year included a rare \u201cmistake\u201d \u2014 that cost the company $11 billion.<\/p>\n

The Oracle of Omaha said in his annual letter<\/a> to shareholders that his 2016 purchase of the company Precision Castparts went bad, forcing Berkshire to \u201cwrite down,\u201d or deduct, nearly $11 billion from its bottom line last year.<\/p>\n

Buffett labeled the write-down on the company, \u201cugly.\u201d And he blamed himself, saying it was \u201calmost entirely the quantification of a mistake I made in 2016.\u201d<\/p>\n

Berkshire, based in Omaha, Nebraska, bought the aerospace manufacturing firm for $32 billion.<\/p>\n

\u201cI paid too much for the company,\u201d Buffett, 90, wrote. \u201cNo one misled me in any way \u2013 I was simply too optimistic about PCC\u2019s normalized profit potential.\u201d<\/p>\n

\"Berkshire
Berkshire Hathaway Chairman and CEO Warren Buffett, center, looks at products produced by Precision Castparts.<\/figcaption>
AP Photo\/Charlie Riedel<\/span><\/figcaption><\/figure>\n

With airlines worldwide flying far less over the last year due to the pandemic, the aerospace industry suffered from major disruption, making 2020 a rough year for PCC. <\/p>\n

\u201cLast year, my miscalculation was laid bare by adverse developments throughout the aerospace industry, PCC\u2019s most important source of customers,\u201d Buffett wrote. <\/p>\n

Buffett stood his ground on the company and said he still believes over time it will earn good returns.<\/p>\n

\"Attendees
Attendees pass the Precision Castparts Corp. booth during the Berkshire Hathaway Inc. annual shareholders meeting in Omaha, Nebraska on April 30, 2016.<\/figcaption>
Bloomberg via Getty Images<\/span><\/figcaption><\/figure>\n

\u201cI was wrong, however, in judging the average amount of future earnings and, consequently, wrong in my calculation of the proper price to pay for the business,\u201d Buffett said. \u201cPCC is far from my first error of that sort. But it\u2019s a big one.\u201d<\/p>\n

Berkshire Hathaway remains the most expensive stock on the market, with its lightly traded \u201cA\u201d shares closing Friday at $364,580, up about 6 percent since the start of the year. Its \u201cB\u201d shares, which were split off several years ago to create a more easily traded stock, settled Friday at $240.51, up about 7.5 percent this year.\n <\/p><\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#Warren Buffett blames $11 billion loss on a ‘mistake’” Even oracles make mistakes. Berkshire Hathaway earned $42.5 billion in 2020, but on Saturday, CEO Warren Buffett admitted the conglomerate\u2019s results for the year included a rare \u201cmistake\u201d \u2014 that cost the company $11 billion. The Oracle of Omaha said in his annual letter to shareholders…<\/p>\n","protected":false},"author":1,"featured_media":190471,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/02\/Precision-Castparts-warren-buffet-1.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[95559,70758,70237,70359,70760],"class_list":["post-190470","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-2-27-21","tag-berkshire-hathaway","tag-corporate-earnings","tag-stocks","tag-warren-buffett"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/190470","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=190470"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/190470\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/190471"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=190470"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=190470"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=190470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}