Bad Omen For Home Furnishings As Berkshire Hathaway Dumps Its RH Stock

Bad Omen For Home Furnishings As Berkshire Hathaway Dumps Its RH Stock

Share to Linkedin Warren Buffet just cast a vote of no confidence in RH RH ahead of Gary Friedman's upcoming first quarter 2023 earnings report. Earlier this week, Berkshire Hathaway BRK. B sold all 2. 36 million shares it held in RH, according to a 13F filing. Buffet began acquiring RH stock in the third quarter 2019, when it was trading for under $200. Riding the pandemic boom that saw home furnishings sales skyrocket, its value peaked in August 2021 at around $770, but then started to fall, ending 2022 at $267. It is now trading just under $260. While TD Cowen remains cautiously optimistic about RH's prospects when it opens Europe later this year and the new RH Contemporary product line catches hold, it believes RH's strategy to continue to move up-market is solid. However, analyst Max Rahlenko added, "We view Berkshire Hathaway's recent liquidation of shares as a negative for the long-term narrative." Friedman's been crystal clear on that narrative: to position RH "as the first fully integrated luxury home brand in the world," by offering more services and elevating prices and design to attract the most discerning affluent customers. Buffett apparently believes that RH hasn't found the