Compared to a profit of $940 during the first quarter of 2008, Berkshire Hathaway posted a $1.5 billion loss for the same period in 2009.
Berkshire Hathaway owns approximatley 10% in Chinese auto company BYD. The car company will be unveiling its electric car at annual meeting of BRK. The meeting on May 2 will be the first step of the car company moving into the US.
Warren Buffet said in his annual letter that BRK lost 9.6% of its book value per share. He admitted to having made some poor mistakes - like buying ConocoPhillips stock while it was high. However, he argued that the economy as a whole was doing poorly.
Goldman Sachs Group announced that it reached an agreement with Berkshire to sell $5B in preferred stock to the company. The stock has a dividend of 10%. The agreement also gives BRK the right to purchase $5B in common stock at a strike price of $115 per share in the next 5 years
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Berkshire announces the startup of a new bond insurer to compete with MBIA and Ambac.
A Barron's article arguing that Berkshire Hathaway is overvalued sends shares lower.
Warren Buffett's $60 billion cash hoard was looked up on by the troubled bankers, LBO firms and mortgage lenders to provide liquidity to the dried up debt market as the credit crunch continued to develop.
Buffett agreed to put up $517.5 million in financing for the deal and came out with an 18 percent share of the merged company, Capital Cities/ABC. The investment community saw the move as unusual for Buffett, who tended to hunt for undervalued companies and stay away from high-priced deals. Buffett, however, said he saw the investment climate changing, with good prospects for companies like television networks which had intangible assets rather than heavy investments in plants and equipment.
