Berkshire Hathaway Inc. (NYSE: BRKA) was big news last week as third quarter profit fell 77% on difficulties in the insurance business. In the wake of the news, Berkshire shares have hit 52-week lows (technically the 52-week lows is $3,000 per share, but this was a strange intraday trading anomaly that was soon corrected).
For those investors that do not hold Berkshire shares but still maintain a fascination with the “Oracle of Omaha,” Warren Buffett, the real news was not last week but will be coming at the end of this one when his end of quarter stock holdings are made public. Thanks to the size of Berkshire’s investments, the company is required to file a 13F with the SEC detailing its security holdings. Buffett made headlines with his stock cheerleading in the New York Times in October, but it will be time to see if he put his money where his mouth was.
Granted, Buffett did make big moves into General Electric (NYSE: GE) and Goldman Sachs (NYSE: GS), but the terms were so distorted – preferred shares with favorable dividends and the option to buy more shares later at attractive pricing – that it was meaningless commentary on the market for the average investor.
It never hurts to pay attention to a man that has generated 25% annual returns for 30 years.
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