Berkshire Hathaway sees drop in value

OMAHA, NEBRASKA - The Berkshire Hathaway Inc. investment empire controlled by billionaire Warren Buffett lost book value last year for the first time since 1965, in part because of the Sept. 11 attacks, according to its annual report issued Saturday. <br> <br> Earnings plummeted to $795 million, or $521 per share, after the company suffered more than $4 billion in insurance underwriting losses, the report said. About half the losses were a result of the terrorist attacks. <br> <br> Until last year, the company&#39;s value had always reflected growth. But in 2001, the company&#39;s net worth loss was $3.77 billion - a drop of 6.2 percent from the year before. Even so, it outperformed the S&P 500, which showed an 11.9 percent loss for that year. <br> <br> Buffett seemed to blame himself as much as the attacks in his letter to shareholders included in the report, in which he claimed responsibility for allowing General Re and other Berkshire reinsurers to offer terrorism coverage for inadequate premiums. General Re provides insurance for primary insurance companies, taking on some of their risk. <br> <br> ``I manage most of Berkshire&#39;s equity portfolio, and my results were poor, just as they have been for several years,&#39;&#39; Buffett said. <br> <br> ``Of even more importance, I allowed General Re to take on business without a safeguard I knew was important, and on September 11th, this error caught up with us.&#39;&#39; <br> <br> Buffett also alluded to the bankruptcy of former energy giant Enron, whose top-ranking executives have been accused of selling millions in Enron stock even as questionable accounting practices led to its collapse. <br> <br> Berkshire Hathaway said in February that its fourth quarter losses included about $46 million from insurance coverage related to Enron. <br> <br> Buffett promised Berkshire stockholders his personal economic results will continue to parallel theirs. <br> <br> ``We will not take cash compensation, restricted stock or option grants that would make our results superior to yours,&#39;&#39; Buffett said. ``Additionally, I will keep well over 99 percent of my net worth in Berkshire. My wife and I have never sold a share, nor do we intend to.&#39;&#39;