Wednesday, December 12, 2007

Berkshire Hathaway Is Poised to Surpass $150,000

Berkshire Hathaway Inc. is poised to close above $150,000 for the first time as investors bet on Chairman Warren Buffett's ability to steer the company through turmoil in financial markets.

The company's Class A shares have risen 34 percent since Aug. 15, beating the 5 percent advance by the Standard & Poor's 500 Index. Berkshire traded as high as $151,650 today, a record and 100 times the next highest-priced company on the New York Stock Exchange, Nasdaq Stock Market or American Stock Exchange, according to data compiled by Bloomberg.

Buffett may find bargain-priced securities as more than $70 billion in bank losses from bad home loans in the U.S. drive shares lower worldwide. His stock investments generated twice the return of the S&P 500 during the past three decades, according to research by Gerald Martin of American University in Washington and John Puthenpurackal of the University of Nevada, Las Vegas.

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