Thursday, July 8, 2010

"Berkshire Cut by Stifel on ‘Blah Shaped’ Recovery" and "Buffett: Double Dip Recession is Unlikely" (BRK.A; BRK.B)

The "A" shares are down $1189 (1%) while the "B's" are off half a buck (.62%) at $79.42.
From Bloomberg:
Warren Buffett’s Berkshire Hathaway Inc. was cut to “sell” by Stifel Nicolaus & Co. on the prospect a slowing economic recovery may pressure revenue at operating units and weigh on equity holdings.
Berkshire, with subsidiaries including sellers of bricks, electric power and auto insurance, faces a “blah-shaped recovery,” analysts led by Meyer Shields wrote today in a research note. Shields, who previously rated Omaha, Nebraska- based Berkshire a “hold,” cut his estimate for 2010 earnings to $5,685 from $5,764 per share.

“Declining consumer confidence will slow consumer spending, as employment very slowly recovers,” the analysts said. “Our weak macroeconomic outlook implies poor second-half 2010 earnings.”
Buffett, the 79-year-old chairman of Berkshire, executed takeovers and stock picks to transform his firm over four decades from a failing textile mill into a company with a market value of almost $200 billion. Berkshire owns businesses including railroad Burlington Northern Santa Fe and auto insurer Geico Corp. and has stakes in firms including credit-card lender American Express Co.
Berkshire’s Class A shares fell $761, or 0.6 percent, to $119,128, at 9:33 a.m. in New York Stock Exchange composite trading. The company has advanced 20 percent this year, compared with the 4.3 percent slide in the Standard & Poor’s 500 Index....MORE
From The Rational Walk:
In an interview today with Yahoo News and The Huffington Post, Warren Buffett reiterates his belief that the United States economy is emerging from recession and is unlikely to suffer a near term relapse.  Mr. Buffett, interviewed from Sun Valley where he is attending the annual Allen & Co. conference, has been making increasingly bullish statements regarding the economic outlook in recent months....MORE