NET JETS PARENT CO. BERKSHIRE HATHAWAY LOSES 7 *BILLION* TODAY ALONE? per ABC NEWS

[Voice Of Reason]

Surprised I haven't seen a thread for this...
Saw this as a Charlie Gibson news lead-in on ABC news tonight, then got busy and missed the story. Anyone else watch tonight?
The only story I can find for news today is one about concern people are dumping stock like crazy in anticipation of more stock dump as Buffett's impending retirement is more imminent.
Anyone see the ABC story tonight at all? Not looking for speculation, just discussion from those who saw the story.
Thanks

 

[skiandsurf]

Stock was down $7500/share to $135,000. Or 5%.

http://www.forbes.com/markets/2007/...rrons-markets-equity-cx_af_1217markets22.html

 

[Voice Of Reason]

Thanks Ski...
Has it ever been discussed who will take the reins when Buffett is no longer around? It's scary to think that one idiot could have the potential to take a good thing and run it under after he is gone. How much say has/will Buffett have in his successor? Who makes the ultimate decision?
I've seen so many companies (time and time again as the industry cycles) that have seemed like "lifer" places (even with "infallible" backing) only to be taken down a completely different road by one greedy idiot who thinks he can cut corners and make it even more profitable, then the employeees subsequently pay the price. I know Buffett must have his favorites to take the reins, but where does the decision ultimately lie? I think it is a valid concern for anyone looking at the full spectrum of career possibilities...

 

[Buckeye]

Buffet's successor has been running the company for many years now, he himself is only a figure head. The loss is only a paper loss and like all other "losses" will rebound soon.

 

[Voice Of Reason]

http://abcnews.go.com/Business/wireStory?id=4007924 <-- Found this (very brief) article on ABC news' own site. Amazing how they made such a huge deal in the lead-in, but don't have much relevant to their own story on their own site. Wish I hit record on the dvr...
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"Buffett's Berkshire Hathaway overvalued: Barron's





Dec 16, 2007

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NEW YORK (Reuters) - Berkshire Hathaway Inc , the conglomerate built by billionaire investor Warren Buffett, could be overvalued, Barron's reported on Sunday.
Barron's estimates that Berkshire is worth about $130,000 a share, about 10 percent below the current level.


Because of its high price relative to its book value and earnings, Berkshire shares could be "dead money for at least a year," the investor weekly said.
Barron's said American International Group , Wells Fargo , and American Express may be better values in the financial sector.
Wall Street is waiting for Buffett's next move, and insurance broker Marsh & McLennan might appeal to him, Barron's said.
Berkshire stock closed on Friday at $143,000, up 38 percent from its 12-month low of $103,800 hit on February 27.
(Reporting by Chris Reiter; Editing by Steve Orlofsky)

Copyright 2007 Reuters News Service. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Buffett's Berkshire Hathaway overvalued: Barron's "

 

[gunfyter]

down 7 B but still up 35 B this yr. Sky not falling

 

[Voice Of Reason]

Another article from today touches on the successor topic:

http://www.forbes.com/markets/econo...er-markets-equity-cx_af_ra_1217markets42.html

"Investors Bail On Berkshire Hathaway
Andrew Farrell, 12.17.07, 9:00 PM ET

Berkshire Hathaway
Nobody likes to overpay. On Monday, investors sold Berkshire Hathway stock in droves after Barron's said it was overvalued.
Class A shares of Berkshire Hathaway (nyse: BRKA - news - people ) fell $6,600, or 4.6%, to $136,400.00, in the wake of a negative article published Sunday in Barron's. Class B shares of Berkshire Hathaway (nyse: BRKB - news - people ) fell $229.00, or 4.8%, to $4,525.00.
Barron's said there appears to be better values in the financial sector. Even after Monday's decline, Berkshire Hathaway, which owns a number of insurance businesses, had a price-earnings ratio of 15.1. American International Group (nyse: AIG - news - people ) has a price-earnings ration of 9.9. Wells Fargo (nyse: WFC - news - people ) has a price-earnings ratio of 11.5. Bank of America (nyse: BAC - news - people ) has a price-earnings ratio of 9.5.
Investors are paying the premium to benefit from the legendary investing savvy of Warren Buffett. Buffett is Berkshire's chairman and chief executive officer.
Buffett, with a fortune of $52.0 billion, is the world's second-richest person and is famed for his ability to find deals in undervalued securities. Since his purchase of Berkshire Hathaway in 1965, he has turned the textile company into a financial giant with a market capitalization of $209.7 billion.
Buffett, however, might not be at Berkshire Hathaway's reins much longer. Buffet is 77 years old, and his vice chairman and longtime business partner, Charles Munger, is 84. The company hasn't named a successor to Buffett.
Analysts think the company is overvalued. According to Thomson Financial, the median price target of analysts covering the company is $119,000. Shares of Berkshire were trading 13.8% higher than that on Monday."

 

[Geronimo4497]

Nobody apply to NJA for the foreseeable future. Their parents company MIGHT go down, or up, or nowhere. OHHHHH the hugemanatee.

 

[popgoesbubble]

Sounds like Voice Full or Semen has a bitter side to him. What happen did you not get the call for an interview?

 

[gunfyter]

no. Pilot raises are bankrupting the company.