Financial meltdown hurts Warren Buffett’s holding company in the fourth quarter.
By Ben Rooney, CNNMoney.com 18 February 2009
NEW YORK (CNNMoney.com) -- Berkshire Hathaway Inc., the holding company run by legendary investor Warren Buffett, saw its overall investment portfolio shrink by 25% in the fourth quarter, according to regulatory forms filed Tuesday with the Securities and Exchange Commission.
In the three months ended Dec. 31, the Omaha, Neb.-based company’s overall holdings decreased to $51.87 billion from $69.89 billion at the end of September.
The bulk of the paper losses were tied to Berkshire’s investments in financial services sector, which has been battered by the credit crisis and volatile markets.
Berkshire’s stake in Bank of America, for example, had a market value of $70.4 million as of Dec. 31, down from $175 million at the end of September, according to the regulatory forms. The value of its holdings in Wells Fargo & Co. and Atlanta-based Sun Trusts Banks Inc also decreased.
Despite the turmoil in the financial sector, however, Berkshire maintained its position of 48 million shares in ratings agency Moodys. (MCO)
Meanwhile, Berkshire took a new position worth more than $100 million as of Dec. 31, in water treatment company Nalco Holding Co. (NLC), according to the SEC forms.
Berkshire acquired 19 million shares of Constellation Energy Group, and sold roughly 4 million shares of energy giant ConocoPhillips. It increased its stake in NRG Energy Inc., a diversified electricity producer.
Berkshire’s class A stock closed $4,140 lower at $84,000 a share on the New York Stock Exchange Tuesday.
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Berkshire portfolio down 25%
Financial meltdown hurts Warren Buffett’s holding company in the fourth quarter.
By Ben Rooney, CNNMoney.com
18 February 2009
NEW YORK (CNNMoney.com) -- Berkshire Hathaway Inc., the holding company run by legendary investor Warren Buffett, saw its overall investment portfolio shrink by 25% in the fourth quarter, according to regulatory forms filed Tuesday with the Securities and Exchange Commission.
In the three months ended Dec. 31, the Omaha, Neb.-based company’s overall holdings decreased to $51.87 billion from $69.89 billion at the end of September.
The bulk of the paper losses were tied to Berkshire’s investments in financial services sector, which has been battered by the credit crisis and volatile markets.
Berkshire’s stake in Bank of America, for example, had a market value of $70.4 million as of Dec. 31, down from $175 million at the end of September, according to the regulatory forms. The value of its holdings in Wells Fargo & Co. and Atlanta-based Sun Trusts Banks Inc also decreased.
Despite the turmoil in the financial sector, however, Berkshire maintained its position of 48 million shares in ratings agency Moodys. (MCO)
Meanwhile, Berkshire took a new position worth more than $100 million as of Dec. 31, in water treatment company Nalco Holding Co. (NLC), according to the SEC forms.
Berkshire acquired 19 million shares of Constellation Energy Group, and sold roughly 4 million shares of energy giant ConocoPhillips. It increased its stake in NRG Energy Inc., a diversified electricity producer.
Berkshire’s class A stock closed $4,140 lower at $84,000 a share on the New York Stock Exchange Tuesday.
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