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RH stock price plunged 8% on Tuesday after Warren Buffett’s Berkshire Hathaway sold its entire stake in the home furnishings company.
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Berkshire Hathaway began building its RH stake in the third quarter of 2019, and it was last worth about $575 million.
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Shares of RH have plunged 67% from their post-pandemic high, but Buffett still likely made a profit on the company.
RH stock plunged as much as 8% on Tuesday after a 13F filing from Berkshire Hathaway revealed that Warren Buffett sold its entire stake in the high-end home furnishings company last quarter.
Berkshire first purchased shares of RH in the third quarter of 2019 when the stock was trading in a range of about $110 to $160.
The stake grew after further purchases until the conglomerate had amassed 2.36 million shares of the company, worth about $575 million at the end of the first quarter.
RH CEO Gary Friedman has been a fan of Warren Buffett, having quoted him often during company earnings calls over the years.
After Buffett’s initial purchase, shares of the company formerly known as Restoration Hardware skyrocketed more than 400% as the pandemic led consumers to outfitting their homes with new furniture.
But shares of RH have fallen considerably since its post-pandemic peak of nearly $750, dropping 67% to today’s price of about $244.
Still, despite the precipitous decline, Buffett’s Berkshire likely made a slight profit on its stake since it bought the bulk of its position at less than $200 per share.
Read the original article on Business Insider
