The energy sector has been crushed since crude started declining from its record high of $147.27 in July to around $57 today.

Suddenly, what was “hot” was “not.”

Investors raced for the exits and nearly all energy and energy-related stocks took a beating.

That includes shares of the “big boys”- Exxon (XOM), Chevron (CVX) and ConocoPhillips (COP).

Berkshire Beefs Up Energy Stake

On Friday, it was revealed that Berkshire Hathaway has been accumulating more shares of ConocoPhillips.

From the AP:

Friday’s filings reveal that Berkshire’s stake in ConocoPhillips grew from 17.5 million shares in March to 59.7 million shares in June and about 84 million in September.

This news shouldn’t come as any surprise to those who follow Berkshire Hathaway and Warren Buffett. A few months ago, Buffett was on CNBC and could not talk about the ConocoPhillips holding- which meant that he was either selling or buying.

It didn’t take a genius to figure out he was …

On February 15 of this year, I had a guest blogger on this forum, Mr. Dickie Pennyworth, who discussed the state of General Motors and Ford.

Did he have some kind of magic crystal ball?

Because his disgust with the automakers (and their, how shall I say it delicately, lack of coherant management) foreshadowed what we, the taxpayers, are now apparently going to have to deal with with the auto companies.

President-Elect Obama and his staffers have already said that the auto companies are considered a vital component of the U.S. economy. That means only one thing.

BAILOUT

The big three are asking for an additional $25 billion just to stay afloat. And GM has all but blackmailed the government by “warning” that its cash could run out by the end of the year.

But as Dickie pointed out 10 months ago- it will take more than money to make these companies viable.

They need new …

There has been a lot of talk in the business media lately about how buy and hold has “failed” in the last decade.

The talking heads have been giving stats like, “if you had bought the S&P 500 Index in 1998, you would have made no money in the last 10 years.”

That’s apparently based on investing $1,000 in the index and never putting any more money into it.

Without a doubt, bear markets are scary beasts. If you had invested in 1929 in the Dow, you would not have “broke even” until 1952!

But one thing is usually forgotten by the talking heads: dividends. During that time period, your dividends would be re-investing. From 1929 to 1952, you would have had a 6% annual return if you had reinvested your dividends during that time period.

In recent years, dividends paid by the S&P 500 have been paltry. In fact, just last year, they were …

I’ve written several times about a foreclosed house in suburban Downers Grove, Illinois (a western suburb of Chicago.)

Here are the facts:

1710 Maple Avenue, Downers Grove:

Originally listed for $979,000 in 2005
Was foreclosed and then bank-owned
Reduced to $712,900 by August 2007
Reduced again to $682,900 in September 2007
Down to $644,000 in November 2007

In February 2008 it was listed at $618,900 with no buyer in sight.

Well- it FINALLY found a buyer in March 2008.

But, lo and behold, it is back on the market! An investor is apparently trying to make a quick buck.

Thanks to reader JDW who just wrote in with an update:

I just had to post an update because this is too hysterical!

This house finally sold in March, 2008 for $540K. Quite a drop from the original price, huh? Well, if that’s not classic enough, we watched the house getting a “freshening” and thought a family was making it …