Buffett says he 'struck out' in 2004

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Shares of Berkshire Hathaway class-A stock fell $302, or less than 1 percent, to close at $89,300 Friday on the New York Stock Exchange.

Berkshire’s profit fell 10 percent from nearly $8.2 billion in 2003 to $7.3 billion last year. However, its fourth-quarter results were strong, with net earnings climbing to $3.34 billion, up some 40 percent from the same period in 2003.

In his letter to shareholders, Buffett highlighted the company’s gains in book value — which determines value by looking at a company’s assets minus its liabilities — as opposed to its true market value of about $135 billion, or nearly $90,000 per share.

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He said Berkshire Hathaway posted a gain in book value net worth of $8.3 billion in 2004, a per-share increase of 10.5 percent and just short of the S&P 500’s gain of 10.9 percent last year. In 2003, the company saw a 21 percent increase in book value while the S&P 500 grew by 28.7 percent.

A call to Berkshire Hathaway offices seeking comment Saturday was not immediately returned.

Berkshire owned about $21.4 billion in foreign currency spread among a dozen countries at the end of the year. Buffett said this hedge against the U.S. dollar does not mean he is unpatriotic, but he voiced a warning about the nation’s growing trade and fiscal deficits.

The holding company owns businesses and stock in a wide variety of industries, including insurance, furniture, restaurants, candy and newspapers.

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