> Warren Buffett Blog: Short Sellers beating Warren Buffett at the moment

Monday, October 27, 2014

Short Sellers beating Warren Buffett at the moment

When short-sellers take positions opposite from Warren Buffett, it appears to be wise to side with the short-sellers. In the past year, activist short-sellers have clashed with Berkshire Hathaway at three companies: International Business Machines Corp. (IBM), Chicago Bridge & Iron Company N.V. (CBI) and Exxon Mobil Corporation (XOM). 

In all three cases, the short-sellers are currently ahead. In addition, Berkshire has suffered losses on its position in Tesco, which prominent hedge funds successfully shorted earlier this year though not in an "activist" fashion. 

However that does not mean Berkshire Hathaway stock is performing poorly. On the contrary Berkshire is having an excellent 2014, with its stock up 18% compared to the S&P 500's 8%. Berkshire and Warren Buffett can stumble just like any of us but they are mere stumbles in the journey, longer term Buffett has proved there is no one better than him in this game.