Buffett’s Berkshire Has Worst First Half Since 1990
July 2, 2008
Buffett’s Berkshire Has Worst First Half Since 1990
July 2 (Bloomberg) — It must be a bear market because even billionaire Warren Buffett’s Berkshire Hathaway Inc. has slumped 20 percent since December.
The decline exceeds the drop of the Standard & Poor’s 500 Index and marks the worst first half for the Omaha, Nebraska- based investment and holding company since 1990. Price competition has driven down revenue at Berkshire’s insurance units, which account for about half of its income.
Berkshire is “close to getting more fairly priced,” said Charles Hamilton, a Nashville, Tennessee-based analyst at FTN Midwest Securities Corp., who has a “neutral” rating on Berkshire. “I wouldn’t say it presents a buying opportunity right now.”
Ken: From Dec 28 to Jun 30, BRK.A dropped ~13% – which means, we both outperformed Warren Buffet! If that’s any consolation.
In other financial news, at least one analyst is expecting the Dow to go below 10,000. This would represent a 29% drop from it’s October high (currently at around -21%). I suppose a further 8% drop isn’t too far fetched with oil hitting all time highs every other day it seems.
