Berkshire Hathaway Inc. Chairman Warren Buffett admitted some investment mistakes in 2008 and painted a grim picture for the economy in 2009.

The company reported net earnings of $4.99 billion in 2008, down from $13.21 billion in 2008. Additionally, Berkshire saw a 9.6 percent drop in per-share book value for 2008, compared to an 11 percent gain in 2007. In a letter to shareholders, Mr. Buffett cited 2008 as the worst year for Berkshire's book value in the 44 years since present management took over.

Mr. Buffett wrote, "As the year progressed, a series of life-threatening problems within many of the world's great financial institutions was unveiled. This led to a dysfunctional credit market that in important respects soon turned nonfunctional."

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