Has Buffett Lost His Touch?

Updated

In today's video, analysts Austin Smith and Andrew Tonner look at Berkshire Hathaway's most recent earnings and touch on some derivatives losses that could make some investors uneasy. Both Andrew and Austin think any worry would be misplaced, though. Berkshire continues to trade for fair valuations and near the 1.1 times price-to-book value "floor" that Warren Buffett put on shares when he said he'd be willing to repurchase at that level. All in all, Berkshire is still a great buy today.

If you're looking at conglomerates, though, there are other options, too. For GE, the recent financial crisis struck a blow, but management took advantage of the market's dip to make strategic bets in energy. If you're a GE investor, you need to understand how these bets could drive this company to become the world's infrastructure leader. At the same time, you need to be aware of the threats to GE's portfolio. To help, we're offering comprehensive coverage for investors in a premium report on General Electric, in which our industrials analyst breaks down GE's multiple businesses. You'll find reasons to buy or sell GE, and you'll receive continuing updates as major events unfold during the year. To get started, click here now.

The article Has Buffett Lost His Touch? originally appeared on Fool.com.

Austin Smith owns shares of Berkshire Hathaway and General Electric. The Motley Fool owns shares of Berkshire Hathaway. Motley Fool newsletter services recommend 3M and Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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