Off Year for Berkshire Doesn't Cow Buffett Buff

But right now, Tilson says investors should focus on how well Berkshire's diversified portfolio performed in the second quarter.

"He was hurt by his exposure to housing in companies like Johns Manville, Shaw Industries, U.S. Gypsum(USG Quote - Cramer on USG - Stock Picks) and Benjamin Moore Paints in the quarter, but the portfolio is so large and diversified that the other businesses more than offset the losses."

Tilson does warn, however, that year over year the comps will be tougher in upcoming quarters, because last year was benign on the hurricane front.

"In a normal year, Berkshire will pay out a couple billion dollars in reinsurance claims," says Tilson. "That's just part of the business and it didn't happen this year."

Finally, Tilson dispels the idea that Buffett would ride to the rescue of a Wall Street firm on the ropes, as he did with Salomon Brothers back in 1991.

"Salomon was a profitable yet painful experience for him," says Tilson. "He had to come to New York City under a great deal of pressure and he does not like to travel too often. And he definitely does not need the stress at this age."

But even if Buffett does not play the role of white knight should Bear Stearns'(BSC Quote - Cramer on BSC - Stock Picks) credit troubles go from crunch to crisis, for example, Tilson says he may bid for the assets of a beaten-down fund.

"During the Long Term Capital crisis, he bid for some of their assets, but did not get them. So you know he would take a look," says Tilson. "If there is value, he'll find it."

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