This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Buffett: Under the Radar

NEW YORK ( TheStreet) -- Wall Street and Main Street commentators were abuzz this week with news and opinions revolving around the Oracle of Omaha, Warren Buffett.

Part of the question, "Who will be the next head of Berkshire Hathaway (BRK.A)?" was answered this week when Buffett flagged 39-year-old Todd Combs as the individual who will take control of the legendary firm's investment portfolio when Buffett departs from the captain's chair.

Prior to this appointment, Combs had a modest following. As manager of Castle Point, a Connecticut-based hedge fund, he was in charge of managing $400 million in assets. In his new role at Berkshire, however, he will eventually be responsible for handling approximately $100 billion. Read more about Comb's appointment by clicking here.

While news of Buffett's successor stole the show this week, it was not the only story revolving around the investor. The Buffett-backed Chinese car company, BYD, and Berkshire Hathaway's newest venture into reinsurance were also in the news. Is BYD Running On Empty?

One of Buffett's more famous investments in recent years has been his venture into the electric car industry with BYD. The Oracle is typically known for his interest in companies which he considers to be boring. This has led him to acquire notable positions in companies such as Coca-Cola (KO), Wal-Mart (WMT) and Republic Services (RSG).

>>View Warren Buffett's Portfolio

However, on the advice of those close to him including his partner, Charlie Munger, he took a bet on BYD, purchasing 10% of the company for nearly $250 million.

Initially, with Buffett's blessing, shares of the former battery-maker took off, becoming one of the most popular car companies in China and a wildly sought after name around the world. Buffett saw his investment grow substantially, and the chairman of BYD, Wang Chuanfu, saw his wealth increase to levels which earned him a place among China's richest individuals.

More recently, however, BYD has run into trouble. The company's share price has seen a turn lower in response to slashed sales targets and reports that the Chinese government has taken action against the firm, ordering BYD to hand over seven of its facilities which were deemed to be built illegally.

This week, BYD was further punished when it released its quarterly earnings report that was disappointing. The company's year-over-year profit in the third-quarter tumbled a staggering 99%.

Although Buffett is known for his long term focus, he can't be too thrilled to hear about the poor performance coming from this holding.

Are BYD's days as a Buffett-backed company numbered? It will be interesting to see.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $118.30 0.42%
FB $104.24 -1.15%
GOOG $742.60 -1.02%
TSLA $230.26 -0.58%
YHOO $33.81 2.64%


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs