Just days after renewing his public criticism of Warren Buffett's current investment strategy and situation, the well-known short seller Doug Kass is out with a very bearish outlook for Berkshire Hathaway shares.
And this time he's not just making a short-term prediction as he did last year when he bet against Berkshire's stock for several months and then covered that bet at a profit.
Today on TheStreet.com, Kass asks, "Is This the End of Warren Buffett?"
His post includes words like "tentative" and "seems," so it is not a definitive obituary. But Kass does answer his headline's question with a strong 'yes.'
Kass calculates that the market value for six of Berkshire's major stock holdings has dropped a total of $16 billion dollars since the end of September. This, he argues, "is more than just a bump in the road."
Based on reported Berkshire holdings as of September 30, and the stock moves since then, Kass estimates:
Wells Fargo: $6.3 billion lost on 290 million shares
American Express: $2.9 billion lost on 151 million shares
Coca-Cola: $2.1 billion lost on 200 million shares
Burlington Northern Santa Fe: $1.8 billion lost on 63 million shares
ConocoPhillips: $1.5 billion lost on 60 million shares
U.S. Bancorp: $1.5 billion lost on 73 million shares
Kass cites his own previously expressed concerns about Buffett's "investment style drift into derivatives," Buffett's "refusal to sell," and "his apparent lack of recognition that investment moats no longer exist in some of his largest investments," especially banking.
http://www.cnbc.com/id/28877530
