This sounds a little crazy regarding Berkshire

Discussion in 'Wall St. News' started by ChkitOut, Oct 25, 2010.


    Berkshire defends the way it handled stock losses

    OMAHA, Neb. (AP) -- Warren Buffett's company is defending its decision not to write down the value of its investments in Kraft Foods, US Bancorp and other stocks even though they were worth nearly $1.9 billion less at the end of 2009 than what Berkshire Hathaway Inc. paid for them.

    On Monday, Berkshire disclosed several letters it exchanged with the Securities and Exchange Commission between April and September about its 2009 annual report.

    The SEC asked why Berkshire hadn't adjusted the value of its stock holdings to reflect losses that had lasted more than 12 months.

    Berkshire officials said they're confident Kraft and US Bancorp stock will rebound within a couple years, and Berkshire is willing to hold the stocks long enough for them to recover.

    Umm, really? You can do that?
  2. Tsing Tao

    Tsing Tao

    with the current mark-to-unicorn environment letting everyone do what they want, you dont honestly expect accounting standards to be enforced, do you?

    change we can believe in.
  3. It all depends. If your CEO badmouths Obama, there's no telling what Fed agencies will attack you.

    If you're a cheerleader for the administration, the paybacks are nice.
  4. Daal


    Amazing, they let management choose the valuation when the security has LIQUID MARKET PRICES. This is getting out of control
  5. He probably learned it from Wells Fargo. If he had owned Bank of America, he would've thrown the losses under "Goodwill."
  6. Daal


    This is hilarious, Buffett is the same dude who says he is not a market timer and buys a stock thinking the exchange might be closed for 10 years and he is fine with it. Now he is reporting to shareholders that his 2y outlook is superior to the market price. He should open a prop trading shop
  7. theoretical value, wasn't that an Enron invention
  8. dtan1e


    thanks for posting this, seems to get more and more interesting, wonder how many co.s out there that are market to whatever one believes?
  9. USA desperately needs to join the rest of the world in adopting IFRS accounting standards. But then again, they wouldn't be able to make up their own rules like this if the international standards were implemented...
    #10     Oct 26, 2010