Berkshire reports a 62 percent drop in 2008 profit

Discussion in 'Wall St. News' started by bond_trad3r, Feb 28, 2009.

  1. Berkshire reports a 62 percent drop in 2008

    Saturday February 28, 9:15 am ET
    By Josh Funk, AP Business Writer
    Buffett reports 62 percent drop in 2008 net income in his worst year at Berkshire Hathaway

    OMAHA, Neb. (AP) -- Warren Buffett's Berkshire Hathaway Inc. has reported a 62 percent drop in its 2008 net income because investment and derivative losses of nearly $7.5 billion weighed on the results.

    Billionaire Buffett details his worst year leading Berkshire in a shareholder letter issued Saturday.

    Berkshire reported $4.99 billion net income, or $3,224 per share, in 2008. That's down from $13.21 billion, or $8,548, in 2007.

    Buffett says the Omaha-based company's book value -- assets minus liabilities -- declined 9.6 percent to $70,530 per share in 2008.

    Berkshire's book value declined only one other time under Buffett, and that was a 6.2 percent decline in 2001.

    Two analysts surveyed by Thomson Reuters on average expected Berkshire to report a 2008 profit of $5,534.50 per share.


    I envision we hit limit down in futures early Monday only to open down slightly and close down a moderate 1 or 2%, Just like 10/24/08. :confused:
  2. I wonder what Buffet thinks of Obama now.
  3. Daal


    'fourth-quarter net income fell 96 percent to $117 million, or $76 a share, from $2.95 billion'

    His book value per share went DOWN in Q4 yet he reported a net income for Q4. You just got to love GAAP accouting
  4. Why is anyone surprised that BRK is getting owned?

    The only thing that could have saved it during this debacle, is if they had BOUGHT huge put protection and not SOLD it.

    But if the Queen has balls she'd be the King.
  5. Cutten


    No surprise. If you earned 50k last year but your house fell 100k, you still gotta pay tax.
  6. Daal


    100% true. Its just the GAAP can mislead some, if one looks at Buffett 2008 record they could confort themselves that Buffett 'made money', yet he took significant writedowns. Even his measure of book value growth overstates his results since the market value of his private equities collapsed. Stock_trader must never have losing years if you measure him by that :D