Filed under: General Electric (GE), Berkshire Hathaway (BRK.A), Goldman Sachs Group (GS)
Berkshire Hathaway Inc. (NYSE: BRK.A) stock has fallen 26% this year to a low not seen since February 2007. That does not sound great, but compared to the S&P’s 42% drop so far in 2008, Buffett looks relatively good.
Buffett has been in the news quite a bit lately. His biography tops the business book best seller list and he’s been flogger-in-chief for the administration’s $810 billion bailout plan — since it was signed into law, the NYSE index has lost $3.8 trillion of its market capitalization. He’s also been trying the cheer-lead America into buying stocks.
But I am wondering whether all this cheer-leading was part of the deal that allowed him to get 10% interest payments and warrants to buy The Goldman Sachs Group (NYSE: GS) and General Electric Company (NYSE: GE) a few weeks ago — their stocks are well below the $115 and $22.25 a share exercise prices on those warrants. Along with his painful loss of wealth, Buffett’s reputation has taken somewhat of a tumble as a result of his getting out in front of what now looks like a bad bailout approach.
Continue reading Warren Buffett is not perfect
Warren Buffett is not perfect originally appeared on BloggingStocks on Tue, 28 Oct 2008 11:56:00 EST. Please see our terms for use of feeds.
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