Berkshire Hathaway Has Worst Year in Decades

New York, NY, Jan. 2, 2009--Shares of Berkshire Hathaway Inc. fell 32 percent last year, the worst performance in more than three decades, as the U.S. recession forced down the value of the firm’s equity holdings and derivative bets, according to a Bloomberg story.

Most of the stock decline happened in the last three months as Berkshire posted a fourth straight profit drop as its insurance business declined.

Howevever, the company still beat the 38 percent tumble of the Standard & Poor’s 500 Index, the 14th year in 20 that Buffett outperformed the benchmark. Just six of 1,591 U.S. stock mutual funds with at least $250 million in assets made money for investors last year, according to data compiled by Bloomberg.

Most of the top holdings in Berkshire’s stock portfolio, valued at $76 billion as of Sept. 30, declined at least 15 percent in the past three months of 2008.

Buffett built Berkshire over four decades from a failing textile maker into a $150 billion company by buying out-of-favor stocks and businesses whose management he deemed superior.

The worst housing slump since the Great Depression has hurt Berkshire’s building-related firms, including Shaw Industries, the world’s largest carpet manufacturer.

Related Topics:Shaw Industries Group, Inc.