Buffett still losing heavily on Teva investment

Warren Buffett Photo: ASAP Creative
Warren Buffett Photo: ASAP Creative

Berkshire Hathaway is down an estimated $350 million 'on paper' on its investment in Teva.

Warren Buffett's Berkshire Hathaway has held a position in Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) since the fourth quarter of 2017, increasing its stake with share purchases in the first two quarters of 2018.

In the first quarter of 2020, Berkshire Hathaway sold some of its Teva shares for the first time, leaving it with 3.9% of the capital of the company's shares.

At the end of the third quarter of 2021, the value of Berkshire Hathaway's shares in Teva remained unchanged from the previous quarter. Although Berkshire Hathaway is not required to report on the exact price at which it buys and sells the shares, market sources estimate that it bought the Teva shares in 2017 and 2018 for $750 million and sold shares for $5 million in 2020.

As of the end of the third quarter of 2021, Berkshire Hathaway's shares in Teva were worth $417 million. Those shares have since gone down in price and are currently worth $404 million. This means that Berkshire Hathaway has made a loss 'on paper' of about $350 million on its investment in Teva shares.

Teva's share price is down nearly 86% since its peak in the summer of 2015, long before Kare Schultz became CEO in December 2017. Teva's share price is currently $9.44, giving a market cap of $10.552 billion.

Published by Globes, Israel business news - en.globes.co.il - on November 16, 2021.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2021.

Warren Buffett Photo: ASAP Creative
Warren Buffett Photo: ASAP Creative
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