Berkshire Hathaway Inc BRK'B:NYSE

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Wedgewood Partners Exits Berkshire Hathaway; Criticizes Buffett for Missed Opportunities

2:07PM ET 10/15/2019 MT Newswires
Investor Wedgewood Partners said in the firm's Q3 client letter that it has sold its stake in Berkshire Hathaway (BRK.A, BRK.B) after decades of being shareholders, while calling out Warren Buffett for missed opportunities and lackluster investments.

The firm said that the cash held by Berkshire, which is over $125 billion, is a "considerable impediment of growth." Wedgewood also noted the missed opportunities to invest in companies that have surged since the bull market started in 2009, with Mastercard (MA) up 1,521%, Visa (V) up 1,137%, Costco (COST) up 522%, and Microsoft (MSFT) up 657%.

Wedgewood also expressed frustration over some of Berkshire's investments, such as in IBM (IBM) and Kraft Heinz (KHC). Buffett sold his entire stake in IBM after shares dropped over 20% between Q4 2011 and early 2018, while Kraft Heinz has lost about two-third of its value since 2018.

The mistakes "do not inspire confidence that Buffett & Co. are still at the top of their game," according to the letter.