Buffett admits loss after bad Irish bank investments

Berkshire Hathaway, the stock market investment vehicle of Warren Buffett, was badly hit by a downturn in the fortunes of two Irish banks, it has emerged.

According to rte.ie, Mr Buffett lost more than $200 million (£140,790,000) on an investment in the banks as the roar of Ireland's Celtic Tiger was turned into more of a purr by the global recession.

In his annual letter to Berkshire Hathaway shareholders, Mr Buffett, who is widely recognised as the world's most successful investor, admitted he had made "already-recogniseable errors".

He commented: "At year end we wrote these holdings down to market: $27 million, for an 89 per cent loss. Since then, the two stocks have declined even further."

Mr Buffett also admitted that several billions of dollars had been lost on stock in oil company ConocoPhillips.

Of US president Barack Obama's huge economic stimulus package, Mr Buffett warned of an "onslaught of inflation".