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Holly LaFon
Holly LaFon
Articles (10140)  | Author's Website |

Warren Buffett Stocks Whose Prices Dropped the Most Post-Brexit

The market carnage that didn't faze Buffett brought down 16 of his stocks

While Warren Buffett (Trades, Portfolio) has no concern as an investor about the United Kingdom’s separation from the European Union or “Brexit,” the event two weeks ago scared away many in the market, including owners of some of his stocks.

GuruFocus’ All-in-One screener found 16 stocks in the Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) chairman’s portfolio had declined more than 5% over the past month. All except one, Goldman Sachs (NYSE:GS), had declined since the Brexit decision June 24. The broader S&P 500 market has risen 0.91% since the vote and 0.17% for the month ended July 8.

Buffett told CNBC in March that he was “hoping the European Union works out well” because of stability and that there would “probably be some downside to the U.K.,” but as an investor he was indifferent.

“It won’t make any difference to anything Berkshire does,” he said. “ I mean if I was assured by [Prime Minister David] Cameron that they were going to stay in or leave, it wouldn’t change one iota what I’m doing in businesses or stocks.”

The most afflicted of Buffett’s Brexit-hit stocks are: Phillips 66 (NYSE:PSX), Mastercard (NYSE:MA), Liberty Global PLC (NASDAQ:LBTYA), Wabco (NYSE:WBC) and Bank of New York (NYSE:BK).

Phillips 66 (NYSE:PSX)

Since June 24, oil refiner Phillips 66 declined 7.6%. Shares traded around $74.70 Friday afternoon, near their 52-week low of $69.79 and off their high of $94.12. This is still slightly above Buffett’s average purchase price of $67, though he made five successive purchases this year at prices around $80.

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Phillips 66 has a market cap of $39.26 billion; its shares were traded around $74.70 with a P/E ratio of 11.23 and P/S ratio of 0.44. The trailing 12-month dividend yield of Phillips 66 stocks is 3.09%. The forward dividend yield of Phillips 66 stocks is 3.39%.

Mastercard (NYSE:MA)

Mastercard stock slid 7.6% since June 24 and trades around $88.43 Friday afternoon. Because Buffett started the position in the first quarter 2011, his average buy price is $39. He has also been selling shares in the past two quarters at prices in the high $80s.

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Mastercard Inc. has a market cap of $97.2 billion with a P/E ratio of 26.64 and P/S ratio of 10.12. The trailing 12-month dividend yield of Mastercard Inc. stocks is 0.83%. The forward dividend yield of Mastercard Inc. stocks is 0.87%. Mastercard Inc. had an annual average earnings growth of 18.60% over the past five years.

Liberty Global Plc (NASDAQ:LBTYA)

Liberty Global stock fell 11.7% since June 24 and is priced around $29.27 Friday afternoon, near a 52-week low of $26.16. This is below Buffett’s average purchase price of $36.

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Liberty Global Plc has a market cap of $27.72 billion with and P/S ratio of 1.6. Liberty Global Plc had an annual average earnings growth of 4.8% over the past 10 years.

Wabco (NYSE:WBC)

Wabco was hurt the most of Buffett’s holdings, down 17.6% since June 24. The stock trades around $89.36 Friday afternoon, still above Buffett’s $58.30 average buy price but below his average sell price of $110.34, around where he has been selling since first quarter 2015.

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Wabco Holdings Inc. has a market cap of $5.04 billion with a P/E ratio of 27.47 and P/S ratio of 1.92. Wabco Holdings Inc. had an annual average earnings growth of 6.1% over the past 10 years.

Bank of New York Mellon Corp. (NYSE:BK)

Shares of Bank of New York Mellon Corp. declined 7.4% since June 24 and are priced around $38.49 each on Friday afternoon. Buffett’s average buy price for this stock is $23.97, and his average sell price is $37.75, thought he bought more shares in the first quarter at an average price of $36.30.

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Bank of New York Mellon Corp. has a market cap of $41.38 billion with a P/E ratio of 13.88 and P/S ratio of 2.76. The trailing 12-month dividend yield of Bank of New York Mellon Corp. stocks is 1.77%. The forward dividend yield of Bank of New York Mellon Corp. stocks is 1.8%. Bank of New York Mellon Corp. had an annual average earnings growth of 7.3% over the past five years.

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About the author:

Holly LaFon
I'm a financial journalist with a Master of Science in journalism from Medill at Northwestern University.

Visit Holly LaFon's Website


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