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Even Buffett Hits (Relative) Hard Times

Okay, maybe now it's time to panic: Shares of Warren Buffett's Berkshire Hathaway holding/investment company briefly dipped below $100,000 per share today for the first time since 2006.

Yes, you read that right: $100,000 per share. Shares peaked at nearly $150,000 each in December 2007.

BerkHath is the highest-priced stock ever. Buffett has steadfastly refused to split the company's stock.

Berkshire Hathaway owns or has interests in several companies, including Geico, Dairy Queen, Coca-Cola, the Mars-Wrigley tie-up and other well-known brands.

Buffett, who is also the lead director of The Washington Post Co. and the world's richest person, is thought by many to be America's smartest investor, though he espouses a simple, easy-to-follow investment strategy: buy stock in companies whose products you know or use and hold onto them.

Buffett is best-known for his "value investing" practices, i.e., buying good stocks on the cheap. For instance, his Berkshire Hathaway bought $5 billion worth of Goldman Sachs in September (a confidence-inspiring move that pushed Goldman stock up and, in the process, made Buffett more than $700 million in a matter of hours) and $3 billion worth of GE last month.

But even Buffett has not been immune to the market catastrophe in recent weeks.

BerkHath's third-quarter profit dropped 77 percent, largely because of its big exposure in the insurance sector.

And at Goldman Sachs, after realizing the $700 million turnaround profit, Buffett's stake has steadily declined with Goldman's stock, which has plummeted from $125 per share when he bought his stake to $65 per share today, as the financial sector continues to get hammered.

-- Frank Ahrens

The Ticker is Twittering!

By Frank Ahrens  |  November 13, 2008; 3:36 PM ET
Categories:  The Ticker  
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