Stifel Nicolaus Downgrades Buffett’s Berkshire Hathaway to ‘Sell’

Stifel Nicolaus analyst Meyer Shields has downgraded Warren Buffett’s Berkshire Hathaway (BRK.a) (BRK.b) from ‘Hold’ to ‘Sell’.

CNBC: In a note to clients, Shields says a “blah-shaped” economic recovery has not been priced into Berkshire’s PPS.  “Our weak macroeconomic outlook implies poor 2H10 earnings” for the company’s operating companies.

There’s also a “doubly whammy” for Berkshire. Shields says a weaker economy will hurt Berkshire’s holdings and derivatives contracts. “Investors’ focus on Berkshire’s book value for valuation imply that its shares could outpace broader market’s declines.”

BRK Class A shares Real-Time-Quote: $118,597.00 Down 1,292.00 (-1.08%) 3:04PM EDT
BRK Class B shares Real-Time-Quote: $78.80 Down -1.12 (-1.40%) 3:13PM EDT

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