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Buffett Builds Berkshire Holdings as Earnings Decline

Devotees of Warren Buffett's investing strategy may need to look no farther for a bargain than the battered stock of the billionaire's Berkshire Hathaway Inc.

``Regardless of what's happening to earnings, the cash is still rolling in and asset prices are down,'' which will help Berkshire add holdings, said Frank Betz, a partner at Warren, New Jersey-based Carret Zane Capital Management, which oversees $800 million, including Berkshire shares. ``It's Buffett time.''

Berkshire may post a 32 percent decline in second-quarter profit today to $2.13 billion as falling prices crimp insurance earnings and building-related businesses slow with the housing slump, said Charles Hamilton, an analyst at FTN Midwest Securities Corp. The Omaha, Nebraska-based investment and holding company's stock had its worst first half since 1990 and is down 18 percent this year through yesterday.

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