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Legendary investor Warren Buffett has an interest in Diageo (LSE:DGE) shares via a subsidiary of Berkshire Hathaway, the investment vehicle of which he is chairman, chief executive and the largest shareholder.
But I think it’s fair to say that the decision to buy stock in the drinks manufacturer hasn’t been one of his best moves. After buying into the company during the first quarter of 2023, the share price has been in steady decline.
Since the start of 2023, it’s fallen by a third. In November 2023, investors reacted badly to a profits warning following a slump in sales in Latin America and the Caribbean.
Compared to the year ended 30 June 2023 (FY23), revenue in FY24 fell by 1.4%. However, earnings per share was 11.8% lower. Unsurprisingly, this appears to have led to a loss of confidence in the company’s prospects.
Don’t panic!
But I suspect Buffett won’t be…
