2 of Warren Buffett's Biggest Swings and Misses Share a Common Theme
Key Points
In more than half a century, Warren Buffett oversaw an aggregate gain in Berkshire Hathaway's Class A shares (BRKA) of almost 6,100,000%.
Although Buffett was fallible, being wrong never cost him or his shareholders a fortune.
However, selling key positions too early did end up costing a pretty penny.
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On Dec. 31, arguably the greatest investor of our generation, Warren Buffett, hung up his work coat for the final time as CEO of Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB). During his more than half-century as CEO, he led Berkshire's Class A shares (BRKA) to a nearly 6,100,000% return, earning him the "Oracle of Omaha" nickname.
But Warren Buffett was fallible. Although he's affably remembered for his first rule of investing, "don't lose money," he had his fair share of investing foul-ups as Berkshire's boss. However, none of his swings and misses have arguably been as sizable as with Apple (NASDAQ: AAPL) and Walt Disney (NYSE: DIS).
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Warren Buffett retired as Berkshire's CEO on Dec. 31. Image source: The Motley Fool.
Warren Buffett was fallible, but being wrong never cost him (or Berkshire) a fortune
Occasionally, the Oracle of Omaha's investments didn't go as planned.
For instance, Buffett made a sizable investment in Paramount (now Paramount Skydance) in early 2022. By the midpoint of 2024, the entirety of this stake was disposed of, with Paramount's stock crumbling under the weight of cord-cutting and a reduced dividend.
It was a similar story for Berkshire's boss during the early stages of the COVID-19 pandemic. Roughly six years ago, he sold more than $4 billion in various airline stocks, taking steep losses in the process.
But these aren't Buffett's largest nominal-dollar misses at Berkshire Hathaway. Rather, it was his decision to pare down or sell shares of Apple and Walt Disney (in hindsight) far too early.
Image source: Getty Images.
The Oracle or Omaha's biggest misses came from selling too early
In the nine quarters leading up to his retirement (Oct. 1, 2023 – Dec. 31, 2025), Buffett sold 687,642,574 shares of Apple, equating to roughly 75% of his company's stake. On Sept. 29, 2023, Apple's stock closed at $171.21. As of July 22, 2026, Apple's shares had rallied to $325.89. Had Warren Buffett not sold a single share of Apple since the third quarter of 2023, Berkshire's stake in the company would have appreciated by another $106.4 billion!
Berkshire's now-former boss's error with Walt Disney wasn't nearly as steep -- but it's not a drop in the bucket, either. In 1966, he and a consortium of investors took a 5% stake in theme-park operator and burgeoning media company Disney for (drum roll)... $4 million. He flipped this stake one year later (1967) for $6 million. Today, a 5% stake in Disney would be worth around $8.3 billion.
The kicker is that Buffett had a second chance with Walt Disney stock in 1996. Disney acquired Capital Cities/ABC in an all-stock deal, and Berkshire was a shareholder in Capital Cities/ABC. Although Warren Buffett held these shares for a few years, he ultimately kicked Disney to the curb by 2000.
The Oracle of Omaha's most memorable misses weren't stocks that he got wrong -- it was the companies he was spot-on about that he sold too early.
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Walt Disney. The Motley Fool has a disclosure policy.
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