Buffett's Berkshire Stock Sees Biggest Fall In 23 Years

Warren Buffett's Berkshire Hathaway Inc. fell the most in at least 23 years, dropping for the eighth straight day since reporting a 77 percent decline in third- quarter profit.

The stock plunged $11,550, or 12 percent, to $84,000 in New York Stock Exchange composite trading and has slipped 41 percent this year, compared with the 45 percent drop in the Standard & Poor's 500 Index. Berkshire, based in Omaha, Nebraska, rose in 17 of the past 20 years.

Read the whole story here.

Comments

[bighillaryfan]

You do realize that Buffett is a billionaire that manipulates us all to get short term gains.

He is absolutely the oppositte of what we want to represent middle class America.

[SnapShots]

SPIN from article:
``There's nothing fundamentally wrong with Berkshire, what's really happening is people are wondering if there's something fundamentally wrong with the economy, and Berkshire is in some ways a bit of a proxy for that,'' said Michael Yoshikami, president of YCMNet Advisors in Walnut Creek, California, which manages $850 million including Berkshire shares.

UNSPIN:
People worldwide have finally realized the global economy is broke, broken and unsustainable. Berkshire took one hell of a hit but will survive better than most.

[ttowse]

I wish I had his problems. Please.

[Egalitare]

Warren is probably buying every single share of B-H the short-termers are selling.

Suckers!

[VivaZapata]

let me get this straight: he's deliberately bad invested to the tune of a 41% drop so that he can buy his stock cheaper? seems to me that the suckers are the ones who stayed with it when it only lost 10% of its value. if he's buying up berkshire hathaway now, he can have it. there's no turnaround coming for a long time.

[Egalitare]

I'm pretty sure he can ride this out.

[vegas9999]

Warren Buffett has correctly noted the dangers to a democracy of inherited wealth as well as the moral obligation of those who have done particularly well in American society to give back to that society. All of this leaves me perplexed by the way Buffett is contributing the bulk of his assets to the Bill and Melinda Gates Foundation. Buffett has received excellent legal advice to guarantee that his contributions will not generate federal tax. It seems strange for prominent and outspoken advocates of the federal estate tax to dispose of their assets in a manner designed to avoid the federal estate tax

[iceage7]

Why is it that companies are judged by how much they make on a quarter basis. I thought investments are long term. If you do not meet the quarter the analysts kill you. And the stock drops. This is unsastainable way of doing business. Companies should be judged on a long term basis...1 to 2 years not quarters.

[billthinx]

This occurs due to a strongly American emphasis on financial manipulation over actual value. There is constant attention to return on capital over return on assets. The Wall Street mentality, so famously in disrepute at the moment, was/is all about quick gain on investments. Turn the money over fast, get in and get out, it's all about the money. Day traders, week traders, seasonal traders, etc. Churning the funds to get the fees. Buy! Sell! Move fast! And then there are the famous unintelligible financial instruments designed to keep the money game going. This is the world of traders. Everyone can win! Group-think mentality convinced everyone that at any point in time they were actually just in the middle of the great game! Even if something "bad" were to happen, we'd be gone by then. Financing and trading are critically important aspects of an economy. But that not the economy. They need to be regulated and corporate leaders must demand a more long-term view. Investors should look to the actual value being produced by companies and management's ability to profit over time from research, insight, skill, efficiency and so forth. Good question.

[VivaZapata]

just yesterday morning, before the 400 plus point drop, he was still clinging to his "be fearful when others are greedy/be greedy when others are fearful" motto, urging everyone to buy american. had they done so, they would have seen 5 plus percent of their assets evaporate. Buffett is like a gambler who won't give up on the game. He is being reckless and keeps pouring good money after bad, not recognizing that the world is no longer operating under the system that made him wealthy. He's been saying this 40% ago. Do not listen to this "sage." Liquidate, liquidate, liquidate. I've been saying this since I started entries on these pages, and I'm neither "sage" nor "seer." Sometimes the graffiti is on the wall for all to see. Here's an adage, Mr. Buffett: "there are none so blind as those who refuse to see."

[billthinx]

It should be noted that at the time Buffett made that statement he had also invested about $5B in GE shares. At that time there was genuine fear about the state of the U.S. economy relative to the rest of the world. Buffett's gesture was a good investment in a company that will continue to be successful over the long term. It was also intended to be a public statement of confidence by a prominent investor in the U.S. economy, designed to foster confidence among others. Maintaining confidence in markets, consumer purchasing, credit, etc. is critical to riding out the recession and emerging strong again. Whether you like Buffett personally or not, whether you follow his investment approach or not, he took a positive stand at a key moment and put his money where his mouth is. That's patriotism too.

[VivaZapata]

The fact is that GE has gone south since he "put his money where his mouth is" and took his investors down there for the ride. I don't like or dislike him, but to look to him as some kind of financial guru should be questioned. Confidence in the market should be based NOT on investment speculation but on the true value of a good or service. Someday we may find out what that true value is, but it may be an unfortunate situation for many who hoped to retire.

[Judyisacutie]

That kind of loss has to feel about as comfortable as a cat in a jacuzzi.

[Steelrod]

So I guess he won't be the richest man in the world come next yr.

[miltshook]

The losses are so broad all over the market right now, it's simply not possible to avoid losing money at the moment. Seriously, the only things preventing a stock market crash right now, are the New Deal mechanisms the Bushies have not been able to kill during the last eight years.

If we are able to avoid another Great Depression, all thanks must go to FDR. And I don't envy Obama for the job ahead of him. I just hope liberals cut him some slack. There is no way he will be able to institute any major reforms until he's able to stabilize the ship.

Milt Shook
http://www.pleasecutthecrap.com

[VivaZapata]

you're right, and i wish there was more media play, emphasizing how good it was that bush didn't get his way on social security. imagine how much more messed up people's retirement would look now!

[JadedAggie]

It isn't really surprising. He does not like to hedge against the market and knows that although it would benefit Berkshire it would be very damaging for the economy as a whole.

[MurrayAbraham]

So what? This fixation on stock is just ridiculous.

WB is a long term investor. He was sitting on loads of cash when the markets were high, waiting for them to go down. He's been buying like crazy these past two months while the markets are at all time lows. When the markets come back (in 2-3 years) he'll be as strong as ever.

[IAB]

Poor baby...my heart bleeds.

[SteveStephens]

Boo Hooo (sob).. no dividends for you. (waaaaaaaaaaah!)

[envyme]

Its tough out here! No more caviar for me...