"We're not seeing [the green shoots]. Whether it's retailing, manufacturing, wherever."
-- Warren Buffett, June 24, 2009

At the beginning of May, I suggested that the market was pinning too much hope on the "green shoots," with investors interpreting any positive economic data as a sign that economic recovery is imminent (the S&P 500 is virtually unchanged from that date).

Buffett knows the economy
Warren Buffett is another skeptic -- and he's much better informed than I am. As the CEO of Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B), Buffett receives data from about 70 different businesses -- on a daily basis, in many cases.

As the following table shows: 1) Berkshire companies cover a broad swath of the economy, 2) they're often leaders in their sector, and 3) some of them are highly sensitive to changes in economic activity and/or the housing sector:

Company

Activity

Annual Revenues

MidAmerican Energy Holdings

Global leader in the production of energy from natural gas, hydroelectric, etc.

$12.7 billion

Shaw Industries

Full-service flooring company and the world's largest carpet manufacturer

> $5 billion

Johns Manville

Manufactures and sells building products; holds leadership positions in all of its key markets

> $2 billion

Iscar Metalworking Companies

One of the world's largest manufacturers of metalworking tools

> $1 billion

GEICO Insurance

Third-largest private passenger auto insurer in the U.S.

N/A

Benjamin Moore Continued...