Skip to main content
BusinessLatest News

Buffett’s Firm Reports $44B Loss

By 08/07/2022 7:25 PMNo Comments

On Saturday, Warren Buffett’s company reported a $43.76 billion loss in the second quarter as the paper value of its investments plummeted.

Despite the grim data, according to reports, Berkshire Hathaway’s many operating companies generally performed well, suggesting the overall economy is weathering the pressure from inflation and rising interest rates.

Berkshire revealed that a largely unrealized $53 billion decline in the value of its investments forced it to report a loss of nearly $44 billion, or $29,754 per Class A share. That is down from $28.1 billion, or $18,488 per Class A share, a year ago.

Berkshire added that the stock prices of three of Berkshire’s most significant investments — Apple, American Express, and Bank of America — fell significantly during the second quarter.

But they asserted that those stocks have all rebounded during the third quarter, meaning Berkshire’s portfolio is already worth more than it was at the end of the quarter.

Earlier, Buffett said Berkshire’s operating earnings are a better measure of the company’s performance because they exclude investment gains and losses, which can vary widely from quarter to quarter.

Buffett said Berkshire’s earnings were up significantly to $9.28 billion, or $6,312.49 per Class A share, from last year’s $6.69 billion, or $4,399.92 per Class A share.

JOIN US ON WHAT'SAPP, TO GET INSTANT STATUS UPDATES AND BE IN THE KNOW.

CLICK HERE

bobby bracros

Author bobby bracros

More posts by bobby bracros

Leave a Reply