US Bancorp (USB) has been one of Warren Buffett’s favorite stocks; however, in the fourth quarter of 2008 he reduced Berkshire Hathaway’s (BRK) holdings by 5,385,700 shares or 7.38%. It was one of the few stock positions he reduced during the fourth quarter. Prior to those sales he owned 72,937,126 common shares of USB and that represented 4.1% of USB shares outstanding.
The price of USB shares on September 30, 2008 was $36.02 and the value of BRK’s holdings was $2,627,194,000. By December 31, 2008 USB had fallen to $25.01, a decline of 30.57%. The total value of the USB shares not sold during the quarter therefore declined by $743,741,200.
If Buffett still has the same position in USB as he had at the end of 2008, he has watched his investment drop by an additional 57.7% as of February 20th when the stock closed at $10.58. That 51 day decline alone would equate to $974,767,977.
It is possible that Buffett has experienced a decline of approximately $1.7 billion or 70.6% in the value of BRK’s holdings in US Bancorp. It should come as no surprise that Berkshire Hathaway’s shares have been under downward pressure.
The price of USB shares on September 30, 2008 was $36.02 and the value of BRK’s holdings was $2,627,194,000. By December 31, 2008 USB had fallen to $25.01, a decline of 30.57%. The total value of the USB shares not sold during the quarter therefore declined by $743,741,200.
If Buffett still has the same position in USB as he had at the end of 2008, he has watched his investment drop by an additional 57.7% as of February 20th when the stock closed at $10.58. That 51 day decline alone would equate to $974,767,977.
It is possible that Buffett has experienced a decline of approximately $1.7 billion or 70.6% in the value of BRK’s holdings in US Bancorp. It should come as no surprise that Berkshire Hathaway’s shares have been under downward pressure.
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