Berkshire Hathaway, the holding company headed by Warren Buffett, has been hit hard by the coronavirus pandemic. A few hours after the annual shareholders’ meeting, which will take place in video streaming this year, the Omaha oracle company has released the results of the first quarter which saw a net loss close to 50 billion dollars (49.7 billion, to be precise) due to the generalized wave of sales on the equity markets which had repercussions on its investment portfolio.

The losses are mainly related to the drop of 54.5 billion, equivalent to $ 30,653 per Class A share, in the value of the company’s portfolio of securities. In the first quarter of the year, Berkshire reported net earnings of $ 21.6 billion, or $ 13,209 per class A share. revenues most noticeable in April. Since the beginning of the year, the value of the Buffett holding shares has decreased by 19%, more than the S&P 500 index which has so far totalled a minus 12%.

“The amount of gains and losses on investments in each quarter does not make sense – explains the company in a statement – and offers information that can be very misleading for investors who know little and nothing about the accounting rules”.

Despite the red for the stock market drop, in the first three months of the year, Berkshire Hathaway saw its liquidity increase to 137 billion – it was 128 billion at the end of 2019 – and its operating profit of 5.7%, at 5, $ 9 billion.

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Amanda Graham
News staff at The Eastern Herald. Writing and publishing news on the economy, politics, business, and current affairs from around the world.