Buffett's Cancer Scare Has Doug Kass Rethinking Berkshire

On Tuesday, investors were trying to digest a late announcement that Warren Buffett had been diagnosed with prostate cancer.

According to a Berkshire Hathaway press release, Buffett has been diagnosed with stage 1 prostate cancer and will begin a 2-month course of treatment of daily radiation

Strategic investor Doug Kass is long Berkshire and tells Fast Money that these developments are leading him to rethink his position.

"The problem with this announcement is that the calculation of the company’s intrinsic value is impacted. The upside reward is now reduced," he says.

In other words, the market didn’t know yesterday that Buffett was ill and today it does.

“Valuations must now be adjusted,” Kass says. "The premium accorded in the marketplace for Buffett must be reduced because there is an unknown now."

And Kass is putting his money where his mouth is. "I actually sold a little stock in the after market. I now want to revisit all my calculationS."

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Trader disclosure: On April 17, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karen Finerman owns HPQ; Joe Terranova owns IBM; Guy Adami owns INTC

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