{"id":190520,"date":"2021-02-27T21:54:00","date_gmt":"2021-02-27T18:54:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/warren-buffett-admits-mistake-cost-berkshire-hathaway-11-billion\/"},"modified":"2021-02-27T21:54:00","modified_gmt":"2021-02-27T18:54:00","slug":"warren-buffett-admits-mistake-cost-berkshire-hathaway-11-billion","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/warren-buffett-admits-mistake-cost-berkshire-hathaway-11-billion\/","title":{"rendered":"#\n  Warren Buffett admits \u2018mistake\u2019 cost Berkshire Hathaway $11 billion"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3db8629a851\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3db8629a851\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/warren-buffett-admits-mistake-cost-berkshire-hathaway-11-billion\/#Even_oracles_make_mistakes\" >Even oracles make mistakes<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/warren-buffett-admits-mistake-cost-berkshire-hathaway-11-billion\/#Eileen_AJ_Connelly\" >Eileen A.J. Connelly<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Warren Buffett admits \u2018mistake\u2019 cost Berkshire Hathaway $11 billion<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Even_oracles_make_mistakes\"><\/span>\n  Even oracles make mistakes<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000182323\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Even oracles make mistakes.<\/p>\n<p> 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<p><strong>See also<\/strong>: Warren Buffett again encourages investors to bet on America<\/p>\n<div class=\"paywall\">\n       The Oracle of Omaha said in his\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.berkshirehathaway.com\/letters\/letters.html\" class=\"icon none\">annual letter<\/a>\u00a0to 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<p>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<p>Berkshire, based in Omaha, Nebraska, bought the aerospace manufacturing firm\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/nypost.com\/2016\/02\/27\/warren-buffett-sees-a-bright-future-for-america\/\" class=\"icon none\">for $32 billion<\/a>.<\/p>\n<p>\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<p>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<p>\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<p>Buffett stood his ground on the company and said he still believes over time it will earn good returns.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>\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<p>Berkshire Hathaway<br \/>\n        BRK.B,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200060694\/composite\" class=\"negative\">-1.30%<\/bg-quote><\/p>\n<p>        BRK.A,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208872451\/composite\" class=\"negative\">-0.88%<\/bg-quote><br \/>\n       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.<\/p>\n<p><strong>Read: <\/strong>These 15 companies are run in a Warren Buffett-like way<\/p>\n<p><strong><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/nypost.com\/2021\/02\/27\/warren-buffett-blames-11-billion-loss-on-a-mistake\/?link=mktw\" class=\"icon none\">This article was first published on NYPost.com<\/a><\/strong><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Eileen A.J. Connelly\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Eileen_AJ_Connelly\"><\/span>Eileen A.J. Connelly<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D2C83351D923%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Warren Buffett admits \u2018mistake\u2019 cost Berkshire Hathaway $11 billion &#8221; Even oracles make mistakes 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. See also: Warren Buffett again&#8230;<\/p>\n","protected":false},"author":1,"featured_media":190521,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-190520","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/190520","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=190520"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/190520\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/190521"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=190520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=190520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=190520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}