Sell Signal on 36% Profit Increase Has Analysts in Math Denial

“Meyer Shields says earnings at Warren Buffett’s Berkshire Hathaway Inc. will increase the most since 2006 this year. He’s also telling investors to sell the shares because the economic recovery is weakening.”

“Shields says his biggest concern is that joblessness will weaken consumer spending, which accounts for 70 percent of the American economy. The unemployment rate held at 9.5 percent for a second month in July and has fallen less than a percentage point from the 26-year high of 10.1 percent last year, according to the Labor Department in Washington.”

“It’s negativity on the economy and therefore the ‘sell’ rating on Berkshire,” Shields said in an interview from Baltimore. “Employment is much worse than what people have anticipated. That uncertainty is contributing to weaker-than- desired employment and if I had to pick one single factor that underlies our negativity, that’s what it is.”

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