Berkshire defends the way it handled stock losses

AP News
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Posted: Oct 25, 2010 1:47 PM
Berkshire defends the way it handled stock losses

Warren Buffett's company is defending its decision not to write down the value of its investments in Kraft Foods, US Bancorp and other stocks even though they were worth nearly $1.9 billion less at the end of 2009 than what Berkshire Hathaway Inc. paid for them.

On Monday, Berkshire disclosed several letters it exchanged with the Securities and Exchange Commission between April and September about its 2009 annual report.

The SEC asked why Berkshire hadn't adjusted the value of its stock holdings to reflect losses that had lasted more than 12 months.

Berkshire officials said they're confident Kraft and US Bancorp stock will rebound within a couple years, and Berkshire is willing to hold the stocks long enough for them to recover.

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Online:

Berkshire Hathaway Inc.: http://www.berkshirehathaway.com

U.S. Securities and Exchange Commission: http://www.sec.gov