business is good though
Warren Buffett’s company reports huge loss
08/06/2022 06:32 pm
Berkshire Hathaway lost more than $43 billion last quarter as stock prices fell. CEO Warren Buffett advises his shareholders, however, to ignore this number. Because Hathway’s subsidiaries earn properly.
The fall in prices on US stock exchanges has put star investor Warren Buffett’s investment company in deep trouble. The bottom line is that Berkshire Hathaway posted a loss of $43.8 billion in the second quarter, the company announced. A year ago there was a profit of $ 28.1 billion.
Shares of the three largest holdings of Apple, Bank of America and American Express were down 21 percent. Operationally, however, the picture was different. Rising interest rates allowed the firm’s insurers to get the most out of their investments. The strong dollar helped boost gains in Europe and Japan.
The insurance and outperforming business in rail freight company BNSF makes up for losses at auto insurer Geico. Operating profit rose 39 percent to $9.28 billion in the quarter.
Because Berkshire Hathaway is required to account for the gains and losses of its investments — even if no shares are sold or bought — net income often fluctuates wildly. The Omaha, Nebraska-based company lost nearly $50 billion in the first quarter of 2020 due to the burden of the coronavirus pandemic. However, for the full year, total profit was $42.5 billion.
Buffett himself has repeatedly criticized the relevant accounting rules and urged Berkshire shareholders to look not at net income or loss but at the operating results of the companies and holdings belonging to the group.
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