In terms of the decline in Berkshire’s share price, most of it can be attributed to the general slowdown of the U.S. economy and the need for many investors to take their (huge) long-term profits in this stock (which means staying out of it for at least 30 days before reloading, as part of the so-called "Wash Sales Rules.").

While such key Berkshire holdings as American Express Co. (NYSE: AXP), Wells Fargo & Co. (NYSE: WFC) and its insurance units are temporarily suffering in different degrees from the real estate crisis and global credit downturns, these conditions will eventually abate and reverse strongly. And since stock prices have, in many cases, been pushed down much more than was warranted, this reversal could be very strong, indeed.
This is a high-quality investment portfolio. Once it contained the very best companies in the U.S. market - such flagship brand names as The Coca-Cola Co. (NYSE: KO). But Buffett has changed with the times, recognizing the powerful opportunities that globalization has brought - and will continue to bring for decades to come. In addition to the afore-mentioned move into Korea, Berkshire is engineering forays into such promising - but undervalued - markets as Germany.

Against this current market backdrop, cash is clearly king. Berkshire’s ready access to investment capital, and the shortage of investing liquidity are ready made for Buffett to exercise his well-known stock-picking prowess - creating still greater profit opportunities for Berkshire Hathaway down the road.

Our conclusion: The short-term weakness in the U.S. economy - which is reflected in the weakness of Berkshire’s stock price - makes Berkshire a bargain itself right now. And with Buffett at the helm, Berkshire will continue to be one of the most-profitable investments you’ll be able to find anywhere in the world.

But this is not a short-term play - or a stock for trading. It’s a long-term core holding - indeed, one of the best you’ll find. Therefore, I would buy Berkshire Hathaway in incremental stages on any weakness between now and the end of the year, as market conditions improve and tax-loss-selling on U.S. stocks abates.

ACTION TO TAKE: BUY shares of Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B), making your purchases in incremental stages between now and the end of this year.