Fidelity’s $ 230 billion person explains why he sinks Tesla shares but still bets big on Warren Buffett

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Danoff manages $ 230 billion for Fidelity Investments, of which more than half of ContraFund is at FCNTX,
A large mutual fund has excluded the SPX of the S&P 500 index,
Single-digit returns this year thanks to a stunning 21% gain.

Such stellar outperformance makes sense, his top holdings include high-tech juggernauts like Amazon ZZ,
Facebook fb,
Microsoft MSFT,
Apple AAPL,
And the alphabet GOOG,
to name a few.

One big winner whose funds are not currently, at least among its top names, is the Tesla TSLA,
And Danoff is still killing himself for selling quickly.

In 2017 and 2018, he landed most of Contrafund’s position at the electric car manufacturer, which, according to Bloomberg News, caused him to miss more than $ 10 billion in profits. Now, he is disputed: buy back or wait and see if the $ 412 billion valuation comes down slightly?

“No question [selling Tesla} was a mistake,” he said in a Bloomberg interview posted on Thursday. “Mistakes are part of this business… you have to learn from your mistakes. I should have said do I feel comfortable owning Tesla for the next 10 years… I should not have cut back.”

One top holding he hasn’t cut back on, despite its underperformance in recent years, is Berkshire Hathaway
which stands in stark contrast to the rest of his tech-heavy portfolio.

“I like best-of-breed companies. I like founder-led companies. And Warren Buffett is still quite entrepreneurial. He’s not for everyone, but he’s a very rational man and he’s the greatest investor of probably this century, ” Danoff told Bloomberg. “With all my tech holdings, this is a very good counterbalance and some ballast for the big fund.”

Watch the full interview:

Tesla shares were dragged down with the broader market on Thursday, shedding almost 5% while the Dow Jones Industrial Average DJIA , S&P and Nasdaq Composite COMP were lower, as well. Berkshire Hathaway was down almost 1%, at last check.


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