Buffett Lost $10.9 Billion in 2008
March 1st, 2009 | 
Author: Berkshire Hathaway Guru, Warren Buffett says U.S. Economy is in Shambles
NEW YORK (Reuters) – Berkshire Hathaway Inc (BRKa.N) (BRKb.N), Warren Buffett’s insurance and investment company, barely broke even in the fourth quarter because of losses on derivatives contracts tied to the stock market.
Profit fell 96 percent, the fifth straight quarterly decline, and Berkshire’s net worth tumbled $10.9 billion in the year’s final three months. Net worth per share fell 9.6 percent in 2008, only the second decline since Buffett began running Berkshire in 1965. It fell 6.2 percent in 2001.
In his eagerly anticipated annual letter to Berkshire shareholders, Buffett also offered a gloomy economic outlook, saying “the economy will be in shambles throughout 2009 — and for that matter, probably well beyond.”
Still, despite what he called “paralyzing fear” resulting from the credit crisis and falling housing and stock prices, he remained optimistic about American resilience, and praised government efforts to avoid a “cataclysmic” breakdown in the financial system.
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