Warren Buffett Proves He's Human After All

Warren Buffett is held in high esteem for his financial wisdom, massive wealth, philanthropic endeavors and stewardship of one of the world's most profitable companies. So how has the Oracle of Omaha's portfolio done so far this year?

Not so hot.

It is impossible to say with certainty how much money Buffett's company, Berkshire Hathaway (BRK.A Quote), has earned or lost in its stock investments this year, since the timing and pricing of transactions are murky, and it is difficult to account for other factors, like dividends. But in light of Berkshire's disclosure that its stock holdings lost about $9 billion in the month of October alone, it's worth taking a look at hypotheticals.

If an investor had, at the end of 2007, placed $100,000 in a portfolio identical to Berkshire's, and sold the shares on Friday, he would have lost $20,716.97 purely in market value, according to an analysis of Morningstar and Bloomberg data by TheStreet.com. Of Berkshire's 40 common stock holdings, just three have posted positive returns through mid-November. A large majority of them -- 82.5% -- have posted double-digit declines.

Berkshire's main business isn't equity investments, it is insurance, and its investment strategy has always been to look past short-term fluctuations to seize opportunities in reliable, blue-chip names. Even so, Berkshire's $76.04 billion portfolio has beat benchmarks like the S&P 500 and Dow Jones Industrial Average this year.

But investors still look to the company's stock picks as a guide for their own -- Buffett's bullish stance on the long-term prospects for U.S. equities last month was seen by many investors as a lonely bright spot in several dismal months on Wall Street. Buffett acknowledged in a New York Times op-ed that he doesn't have "the faintest idea" where stock values will go over the next year, but is buying now because he feels certain firms are undervalued, and desperate enough to provide incentives for the massive investments Berkshire can make.