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Brutal Market Doesn't Spare Buffett
Berkshire Hathaway takes biggest dive in decades
By Rob Quinn
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Posted Nov 20, 08 3:53 AM CST
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(Newser)
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The "Oracle of Omaha" is proving even he's not immune from market blows, reports Bloomberg. Warren Buffet's Berkshire Hathaway took a 12% nosedive yesterday, its biggest one-day fall since 1987's Black Monday. The conglomerate is down 41% for the year and has been dropping steadily for eight days after announcing a 77% drop in third-quarter profits.
The plummeting share price doesn't indicate a fundamental problem with Berkshire, but reflects investors' deep concerns about the economy, say analysts. Berkshire holds huge stakes in troubled financial giants like American Express, whose holdings lost $9 billion in value in October alone. The cost of insuring against the company defaulting on its debts has tripled since September.