Why has Berkshire Hathaway’s stock dropped so much in the last few weeks?

Berkshire, though it is probably less volatile than just about any other stock you could think of, is not totally immune from the rest of the market–which has been tanking lately. Also BRK moved up sharply in recent months–an A share topped 150,000 and Warren was apparently the richest man on earth for about a day–before falling back. This may just be a correction.

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tied into short term mortgage lending like all the others.

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Its a barometer for the rest of the market. The S&P and Dow are down and BRK_A is no exeption.

Another reason could also be the insurance business which they are in. Rates and margins are low.

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If we knew that, we could all be rich, couldn't we ?

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On a percentage basis it hasn't dropped so much and for a stock like BRK, you absolutely don't need to watch it on a daily basis. Over the course of 2007 it was up over 25% if memory serves me correctly.

You can buy Berkshire's class B stock for a 1/30 of the price of the class A.

Finally, its really just a mutual fund, but there are many other mutual funds out there that have beaten BRK handily over the past 10 years on a total return basis.

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Berkshire is just a compilation of all the stocks they own, when those smaller companies go down in volumne, so does birkshire. There bright point is that they tend to have good management so investors will pay a premium for that,,, you should check out www.thewallstreethunter.com they have a portfolio in there where they track all the warren buffett stocks everyday and see how they are doing…

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