$43.8 billion! |
Mega loss for Warren Buffett
The holding company of star investor Warren Buffett (91) reports a loss of 43.8 billion US dollars in the second quarter.
The reason is the price losses on the US stock exchanges – the share value of the three largest holdings Apple, Bank of America and American Express alone had fallen by 21 percent. A year earlier, a profit of 28.1 billion dollars had accrued.
But operationally things went better. Rising interest rates have enabled the company’s insurance companies to get more out of their investments. The firmer dollar helped boost gains in Europe and Japan. Insurance and better-performing business at rail freight company BNSF offset losses at auto insurer Geico. Operating profit increased 39 percent to $9.28 billion in the quarter.
Berkshire Hathaway does not have to account for the gains and losses of its investments even if no shares are sold or bought. Therefore, the net result often fluctuates greatly.
In 2020, the company lost almost $50 billion in the first quarter due to the corona pandemic. For the year as a whole, however, profits totaled $42.5 billion. (Archyde.com/bw)