Warren Buffet believes the economy will remain in “shambles”
Jennifer McClelland | RSS | 0 CommentsThe billionaire Warren Buffet, who has made his money in investments, belives that the United States economy will remain in bad condition through 2009 and “well beyond.”
The news didn’t give any hope to investors or people waiting for the economy to pick up.
Then again, his negative outlook on the future could be due to his decline in profits at Berkshire Hathaway Inc.
Berkshire barely broke even in the fourth quarter because of losses on derivatives contracts tied to the stock market.
Profit fell 96 percent, the fifth straight quarterly decline, and Berkshire’s net worth tumbled $10.9 billion in the year’s final three months.
Net worth per share fell 9.6 percent for the whole of 2008, only the second decline since Buffett began running Berkshire in 1965. It fell 6.2 percent in 2001.
Berkshire generates about half its results from insurance, including auto insurer Geico Corp, but operates more than 70 businesses that offer such things as carpeting, ice cream, paint, real estate services and underwear.
Today’s Ebook – Warren Buffet Stock Picks Valuation
The Dow Jones Crossed the 10,000 mark today
More strange indicators of the economy
Tags: fourth quarter, underwear, berkshire hathaway
