In a shock revelation, Berkshire Hathaway Inc., under the famous market legend Warren Buffett, reported this-morning that last year was the worst year ever for the brilliant investor. The company’s 4th quarter income (net) was $117 million, a devastating 96% decline from the previous year’s $2.9 billion figure. Poor results from the firm’s insurance holdings and big declines in stock holdings – such as Coca-Cola Co. and American Express Co – are being held as the major causes of the decline. Overall, shares are down about 19% which is slightly better than the industrial average on the Dow Jones so far.
brk.a, berkshire, warren buffet
2008 was the second year in fourty that Berkshire published declining results – Berkshire’s book value (/share) fell 6.2% in 2001. Buffet generally uses book value per share to track performance, and it fell last year by nine point six percent. This is the greatest fall since Warren Buffet took up leadership of Berkshire Hathaway back in 1965. However, Berkshire’s performance last year still exceeded the S & P 500 stock index, which fell 37% last year (dividends included). Which institution will be next to feel the bite?