When you're at the top of your game you get a lot of attention and Warren Buffett was the focus of a Barron's story this week titled Warren's Unhappy New Year (subscription required).The article points out that 'my pal Warren' has been overly optimistic about his financial holdings: American Express (NYSE: AXP), U.S. Bancorp (NYSE: USB) and Wells Fargo (NYSE: WFC).
All three companies have been hit hard the last few weeks, bringing down Berkshire Hathaway (NYSE: BRK.A). Last week, USB and WFC were trading about 50% off the year-end prices.
Does it make sense for Barron's to do a write-up about a turn of events over a three week period given a 50-year track record? Surely you jest Andrew Barry.
Well, actually Barron's has been following Buffett and Berkshire regularly, and this might be viewed more as taking the temperature of the stock at a point in time. At this point in time, Berkshire is only down 10% this year, but it is down over 35% since a late 2007 story in Barron's with the stock going from $144,000 to $86,000 now. That is better than the market has done, but don't expect Buffett to get cut any slack.
Other points in the article mention losses and loss reserves among his insurance interests, and recent investments in Goldman Goldman Sachs Group (NYSE: GS) and General Electric (NYSE: GE) exhausting cash that might be limiting future acquisition possibilities.
The story makes no mention of Berkshire's many anchors of stability, including Coca-Cola (NYSE: KO), Kraft Foods (NYSE: KFT), Johnson and Johnson (NYSE: JNJ), Procter & Gamble (NYSE: PG) and more. Perhaps we should give poor ol' Warren a full month before we waste a page in Barron's. The one thing the story does not discuss is whether BRK.A is worth considering as an investment -- and it might be!
Berkshire Hathaway's annual report will be released March 1. GE and WFC were included in Chasing Value: 9 picks for 2009 -- APC, GE, ISRG, WFC and more
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. DISCLOSURE: I currently do not own shares of BRK.B, GE, JNJ and WFC.
Other points in the article mention losses and loss reserves among his insurance interests, and recent investments in Goldman Goldman Sachs Group (NYSE: GS) and General Electric (NYSE: GE) exhausting cash that might be limiting future acquisition possibilities.
The story makes no mention of Berkshire's many anchors of stability, including Coca-Cola (NYSE: KO), Kraft Foods (NYSE: KFT), Johnson and Johnson (NYSE: JNJ), Procter & Gamble (NYSE: PG) and more. Perhaps we should give poor ol' Warren a full month before we waste a page in Barron's. The one thing the story does not discuss is whether BRK.A is worth considering as an investment -- and it might be!
Berkshire Hathaway's annual report will be released March 1. GE and WFC were included in Chasing Value: 9 picks for 2009 -- APC, GE, ISRG, WFC and more
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. DISCLOSURE: I currently do not own shares of BRK.B, GE, JNJ and WFC.
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Reader Comments (Page 1 of 1)
2-05-2009 @ 1:17AM
yvote4u said...
I just wish he would put 1 of his new trains up in North Conway to twin Mountain then into Berlin and reopen a couple of paper mills Americans need .59 $ tp not 39,000.00 SUV