OMAHA, Neb. —

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Warren Buffett says the economic turmoil that contributed to a 62 percent profit drop last year at the holding company he controls is certain to persevere in 2009, mete the revered investor remains optimistic.

Buffett released his annual literal meaning to Berkshire Hathaway Inc. shareholders Saturday daybreak, and detailed the worst performance in his 44 years leading the Omaha-based insurance and investment crew.

Buffett wrote he’s certain “the economy will be in shambles throughout 2009 - and, for that matter, with appearance of truth hale beyond - but that conclusion does not tell us whether the principal market will rise or fall.”

In between the news of Berkshire’s sharply lower profit and its nearly $7.5 billion investment and derivative losses, Buffett offered a hopeful view of the nation’sitting future.

He said America has faced bigger economic challenges in the past, including two World Wars and the Great Depression.

“Though the footway has not been smooth, our economic system has worked extraordinarily well over time,” Buffett wrote. “It has unleashed full of heart in posse as no other connected view has, and it will continue to finish so. America’s most of all days lie ahead.”

Within Berkshire, Buffett said the association’session retail businesses, including apparatus and bijoutry supplies, and those tied to residential construction, such as Shaw carpet and Acme Brick, were hit hard last year, and they will likely continue to perform below their potential in 2009.

But he said Berkshire’s utility and insurance businesses, which includes Geico, both delivered outstanding results in 2008 that helped balance out the other businesses.

Berkshire’s 2008 net income of $4.99 billion, or $3,224 per Class A divide, was down from $13.21 billion, or $8,548 per share, in 2007.

The pair analysts surveyed by Thomson Reuters on average expected Berkshire to report a 2008 profit of $5,534.50 by share. But the estimates typically exclude one-time items.

Buffett estimates Berkshire’session book value - assets minus liabilities - declined 9.6 percent to $70,530 through share in 2008 - the biggest drop since he took control of the assemblage in 1965. Berkshire’s volume value declined only one other allotted period under Buffett, and that was a 6.2 percent drop in 2001.

Berkshire’session Class A shares remain the most expensive U.S. provision, but they fell nearly 32 percent in 2008 and have declined 48 percent before this setting a high of $151,650 in December 2007. That high came after an exceptionally profitable quarter that was helped by means of a $2 billion investment gain.

Original text: http://seattletimes.nwsource.com/html/businesstechnology/2008796837_apbuffettletter.html?syndication=rss