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Berkshire Hathaway earnings - Just a bit outside

Discussion in 'Sports and News' started by dixiehack, May 4, 2012.

  1. dixiehack

    dixiehack Well-Known Member

    As in $164 per share below estimates.


    Given the stratospheric valuation, it isn't the complete catastrophe it looks like at first glance. But it is still a big, big miss and sets up an ugly Monday for the markets.
  2. Chef2

    Chef2 Well-Known Member

    I will be be very curious to see what the Facebook IPO comes off at.

    Saw a thing this morning where it is valued at 96 BILLION.
  3. Boom_70

    Boom_70 Well-Known Member

    Buffet is pissed about the extra tax so he rigged the results to hurt Obama.
  4. LongTimeListener

    LongTimeListener Well-Known Member

    Shares were trading at $121,950 at close of market Friday. Should be a good buying opportunity if it gets down to $119,000.
  5. Boom_70

    Boom_70 Well-Known Member

    Maybe things are not so bad in Omaha

    (Reuters) - Warren Buffett's Berkshire Hathaway more than doubled its profit in the first quarter, as the conglomerate's insurance business was spared from the devastating natural disaster losses that hit the company a year earlier.

    The company also benefited from much higher gains in its derivatives portfolio, offset in part by a substantial write-down on one of its bond holdings.ha:
  6. Michael_ Gee

    Michael_ Gee Well-Known Member

    More American innumeracy in action. What percentage of $121,000 is $164? About 1.33.
  7. DocTalk

    DocTalk Active Member

    There are earnings and then there are earnings. we'll see what the markets decide on Monday. Headline from CNN:

    Buffett's Berkshire doubles earnings
    By James O'Toole @CNNMoneyInvest May 4, 2012: 6:32 PM ET

    NEW YORK (CNNMoney) -- Warren Buffett's Berkshire Hathaway posted first-quarter earnings Friday that doubled versus last year, buoyed by gains in its insurance businesses and derivatives holdings.

    The company posted $3.25 billion in earnings, translating to $1,966 per Class A share, compared with $1.51 billion in the first quarter of last year.

    Operating earnings, which exclude some investment and derivative gains, were $1,615 a share, coming up short of the $1,780 prediction from analysts surveyed by Thomson Reuters.
  8. dixiehack

    dixiehack Well-Known Member

    Move the decimal point if you like. A stock trading at $121 would still raise eyebrows with an earnings miss of 16 cents a share. And Berkshire is just as much a religion as a holding company. Anything it does will create oversized reactions.
  9. LongTimeListener

    LongTimeListener Well-Known Member

    16 cents a share really isn't all that much of a miss. Certainly not a blood-in-the-streets kind of number. Investors seem focused more on the fact that their earnings doubled from last year. The estimate is just that, an estimate.

    Class B shares were down 0.5 percent in after-hours trading, FWIW. I would be very surprised if this makes a ripple at all on Wall Street.
  10. Sea Bass

    Sea Bass Well-Known Member

    Actually, it's only .133%
  11. maberger

    maberger Member

    BRK.A up $430 early in day. Europe elections seem to weigh down US market currently
  12. Oscar Gamble

    Oscar Gamble New Member

    Yeah, real ugly day for BRK.A

    Berkshire Hathaway's shares UP $1,726.00 (+1.42%) at the end of Monday's trading to close at $123,676.00 a share.
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