AdBrite

Your Ad Here

AdBrite

Your Ad Here

Saturday, May 2, 2009

Berkshire's meeting will Focus on Economy's future


OMAHA, Neb. — The past year’s economic turmoil will provide plenty to talk about at this weekend’s Berkshire Hathaway Inc. shareholders meeting.

More than 30,000 people are expected in Omaha on Saturday to listen to the company’s top two executives, Warren Buffett and Charlie Munger, answer questions about the recession and Berkshire’s largely unrealized investment losses.

Shareholders will also vote on a proposal that would require the company to produce a sustainability report.

Buffett has made headlines in the past year with his views on the economy, including that the U.S. is engaged in an "economic Pearl Harbor.”

And Buffett’s Omaha-based company suffered its worst year since he took over in 1965.

Berkshire’s Class A stock lost 32 percent in 2008, and Berkshire’s book value — assets minus liabilities — declined 9.6 percent, to $70,530 per share.

But despite Berkshire’s rough year — which was depressed by unrealized multibillion-dollar derivative losses — the company still outpaced the market index Buffett uses as a measuring stick. The S&P 500 fell 37 percent in 2008.

Berkshire still reported a 2008 profit of $4.99 billion, or $3,224 per Class A share. That was down 62 percent from the previous year, but better than many companies.

"This market meltdown has provided the opportunity for him to put the finishing touches on his Berkshire Hathaway masterpiece,” said analyst Justin Fuller, who works with Midway Capital Research & Management.


by the associated press

No comments:

Post a Comment