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Recently Warren Buffet
t lost $2.5 billion between his positions in IBM and Coca-Cola. This article discusses how
poor earnings on their quarterly reports led to a drop in IBM’s and Coke’s stock price by 11% and 6% respectively. Buffett is undoubtedly the most famous value investor in history who follows the teachings of Ben Graham – searching for high-quality companies that tend to rise over time because of their intrinsic value. This is a strategy that was briefly touched on in our COMM 101 class about capital markets. Having an interest in equities, this is an approach that I am familiar with and is one that I often implement when evaluating various securities. Searching for undervalued companies was a focal point of discussion that the PMF guest speakers touched on when they explained how they pick stocks for their portfolio. Although this strategy has proven to be successful for many investors, it is imperative to acknowledge that the capital markets never come without risk. Warren Buffet has made a fortune investing but even he is not immune to the forces of the market. The long term success however of the PMF program and Berkshire Hathaway is evidence of the effectiveness of investing in 
companies with strong fundamentals. Keeping this in mind I think it is highly unlikely that Buffett will liquidate these positions or change his investment strategies.
Images obtained from hyperlink at the top of the post – I do not own this images