Comments on: Berkshire Hathaway Posts its Worst First Half in 18 Years http://www.businesspundit.com/berkshire-hathaway-worst-half-in-18-years/ Entrepreneurship, Startup Companies and Business Philosophy Sat, 20 Mar 2010 01:45:14 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Robert Barr http://www.businesspundit.com/berkshire-hathaway-worst-half-in-18-years/comment-page-1/#comment-7287 Robert Barr Thu, 17 Jul 2008 15:02:14 +0000 http://www.businesspundit.com/berkshire-hathaway-worst-half-in-18-years/#comment-7287 InvestmentPlayground- I agree 100%. I would give my money to Warren any day of the week. In fact, funny investment story. It's about 1989-90, looking at 2 companies; one little piss ant insurance outfit BH, and Midway Airlines. BH was at %5,000 and Midway was at $13 a share. I went with the airline. 2 years later the airline went bankrupt and BH was at $65000. The rest as they say, is history. That's one of the reasons I have an X wife. :) InvestmentPlayground-
I agree 100%. I would give my money to Warren any day of the week. In fact, funny investment story. It’s about 1989-90, looking at 2 companies; one little piss ant insurance outfit BH, and Midway Airlines. BH was at %5,000 and Midway was at $13 a share.

I went with the airline. 2 years later the airline went bankrupt and BH was at $65000. The rest as they say, is history. That’s one of the reasons I have an X wife. :)

]]> By: investmentplayground http://www.businesspundit.com/berkshire-hathaway-worst-half-in-18-years/comment-page-1/#comment-7286 investmentplayground Thu, 17 Jul 2008 13:49:01 +0000 http://www.businesspundit.com/berkshire-hathaway-worst-half-in-18-years/#comment-7286 RB - good points. Forgive me for taking a Warren comment personally! But mapping out Berkshire's earnings and shareholder return on a long-term scale still outperforms the S&P by far, as the article says. And looking at just one period of six months probably isn't going to give a good indicator of the company's long-term health, Warren's investment ability, nor of the general economy. As long as he's outperforming the market. From what I understand - in all but one year of Berkshire's existence, Warren has made positive income. And even in that one year (2002 I believe), he still outperformed the market. RB – good points. Forgive me for taking a Warren comment personally! But mapping out Berkshire’s earnings and shareholder return on a long-term scale still outperforms the S&P by far, as the article says. And looking at just one period of six months probably isn’t going to give a good indicator of the company’s long-term health, Warren’s investment ability, nor of the general economy. As long as he’s outperforming the market. From what I understand – in all but one year of Berkshire’s existence, Warren has made positive income. And even in that one year (2002 I believe), he still outperformed the market.

]]> By: Robert Barr http://www.businesspundit.com/berkshire-hathaway-worst-half-in-18-years/comment-page-1/#comment-7264 Robert Barr Wed, 16 Jul 2008 15:06:51 +0000 http://www.businesspundit.com/berkshire-hathaway-worst-half-in-18-years/#comment-7264 Let's review: "Why the drop? Berkshire makes roughly half of its income off insurance units such as wholly-owned National Indemnity and Geico. Price competition in this sector drove down revenue. In addition, U.S. Bancorp, Wells Fargo & Co., and American Express, three of BH’s biggest equity holdings, posted losses. AmEx and U.S. Bancorp fell 14% in Q2; Wells Fargo fell 18%." This is getting it right? Let's see; No excuse for the competition issue, I see that friggin' gecko everywhere, not my fault it doesn't convert. If he owns stocks in the worst performing sector in the U.S. economy, that's not getting it right. "pay $300 million for a portfolio of loans backing factory-built homes" -that's French for mobile homes right? The kind that get sucked up in a tornado or blown away in hurricanes? That's just not getting it right that didn't happen yet! Don't get me wrong investmentplayground, Warren is a rock star no doubt, but the title of the post was "Berkshire Hathaway Posts its Worst First Half in 18 Years" so it wasn't going to be good ;) Let’s review:

“Why the drop? Berkshire makes roughly half of its income off insurance units such as wholly-owned National Indemnity and Geico. Price competition in this sector drove down revenue. In addition, U.S. Bancorp, Wells Fargo & Co., and American Express, three of BH’s biggest equity holdings, posted losses. AmEx and U.S. Bancorp fell 14% in Q2; Wells Fargo fell 18%.”

This is getting it right? Let’s see;

No excuse for the competition issue, I see that friggin’ gecko everywhere, not my fault it doesn’t convert.

If he owns stocks in the worst performing sector in the U.S. economy, that’s not getting it right.

“pay $300 million for a portfolio of loans backing factory-built homes”

-that’s French for mobile homes right? The kind that get sucked up in a tornado or blown away in hurricanes? That’s just not getting it right that didn’t happen yet!

Don’t get me wrong investmentplayground, Warren is a rock star no doubt, but the title of the post was “Berkshire Hathaway Posts its Worst First Half in 18 Years” so it wasn’t going to be good ;)

]]> By: investmentplayground http://www.businesspundit.com/berkshire-hathaway-worst-half-in-18-years/comment-page-1/#comment-7260 investmentplayground Tue, 15 Jul 2008 17:04:12 +0000 http://www.businesspundit.com/berkshire-hathaway-worst-half-in-18-years/#comment-7260 This bodes dangerous for a lot of value-oriented investors. Although most of us don't own shares in BRK, the mutual funds we own certainly do. If you're invested in funds like Fairholme, American Funds, Cascade Investment, or Sequoia Funds, you're surely feeling a pinch. As far as Warren getting it right or not - in his latest report he told his investors that the good times are ending, and insurance profit will definitely be decreasing. So to our friend Robert Barr - he seems like he's getting it exactly right. This bodes dangerous for a lot of value-oriented investors. Although most of us don’t own shares in BRK, the mutual funds we own certainly do. If you’re invested in funds like Fairholme, American Funds, Cascade Investment, or Sequoia Funds, you’re surely feeling a pinch.

As far as Warren getting it right or not – in his latest report he told his investors that the good times are ending, and insurance profit will definitely be decreasing. So to our friend Robert Barr – he seems like he’s getting it exactly right.

]]> By: Robert Barr http://www.businesspundit.com/berkshire-hathaway-worst-half-in-18-years/comment-page-1/#comment-6551 Robert Barr Thu, 03 Jul 2008 03:55:34 +0000 http://www.businesspundit.com/berkshire-hathaway-worst-half-in-18-years/#comment-6551 WOW! You know the country is in the crapper when Warren can't get it right! WOW! You know the country is in the crapper when Warren can’t get it right!

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