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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35357  
Subject: Berkshire takes $1B bond writedown Date: 2/28/2011 8:36 AM
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http://www.bloomberg.com/news/2011-02-28/berkshire-has-1-bil...

They have written down about 3% of their bond portfolio:

The impairment is equal to about 3 percent of the company’s bond portfolio
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“A 3 percent default rate is certainly a rather big default rate,” said Michael Yoshikami, chief investment strategist at Berkshire shareholder YCMNet Advisors. “Berkshire has been impacted, like a number of insurance companies have been impacted, by chasing higher yield.”

The article also discusses Berkshire's writedowns of some stock investments, even while booking the highest quarterly profit since 2007, due to derivative bets and Burlington Northern Santa Fe results.

For those concentrating on yield, Buffet offers some caution:

“We agree with investment writer Ray DeVoe’s observation, ‘More money has been lost reaching for yield than at the point of a gun,’” Buffett said.

AJ
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