The Four Downward Trends Of Bershire Hathaway A Share In The Last Decade

It is interesting to observe that Bershire Hathaway A share have four downward trends in the last ten year as show in the diagram.












From the above diagram, i have label the four major downward trends in Bershire Hathaway A share, trend 1, 2, 3 and 4.

For trend 1, it is the Asia Currency Crisis that cause the downward fall of BRK.A share. This is something that Warren can do nothing about.

As for trend 2, it is the bubbling of the Internet or the dot com industry from 1999 to early 2000. Everyone write of Warren Buffett investment strategy claim that he is out of date and should instead invest in dot com companies. Warren did not follow the crowds but insist on following his investment philosophy, looking into the economical fundamental of the company and buy it when the market price is below intrinic value.

When the dot com bubble burst in the early 2000, Bershire Hathaway A share move in the upward trend until early 2004.

I do not know what causes the downward trend 3. If anyone know, please enlighten me.

Finally, download trend 4 in the year 2005 can be bested explain by a quote from Jim Jubak, MSN Money senior markets editor. This is the quote from him "Warren Buffett, no investing slouch, bet heavily on a falling U.S. dollar in 2005. Right trend. Terrible timing. The result? A $955 million loss for his company"