For every bet an investor makes on a stock, there's always someone on the other side of the trade betting the opposite.
That's as true for day traders as it is for billionaires like Warren Buffett and Dan Loeb. In fact, those two investing giants are on opposite sides of a bet on Verizon Communications, according to their most recent 13F filings. In the second quarter, Buffett increased his position in Verizon, while Loeb sold out of his entire position.
Both Buffett and Loeb snatched up huge positions in Verizon in this year's first quarter, with Buffett buying 11 million shares and Loeb's Third Point taking a 3.5 million share stake in the telecommunications company.
With the stock over the second quarter gaining around $4, going from roughly $46 per share to more than $50 per share, Loeb took his profits and cashed out. But Buffett, a noted long-term investor, upped his ante by nearly 4 million shares. Verizon shares so far this quarter have touched as high as $52 but are now trading at around $49 each.
So far this quarter Verizon has been quiet, except for experiencing a very public shaming from Netflix regarding its slow internet connection speed, which prompted a cease and desist letter from the communications giant.
Does Buffett know something about Verizon that Loeb doesn't? Or vice-versa? We will find out when the company next reports its earnings in late October.
Mariah Summers is a business reporter for BuzzFeed News and is based in New York. Summers reports on hospitality, travel and real estate.
Contact Mariah Summers at email@example.com.
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