A $44 billion investment loss for Warren Buffett’s Berkshire Hathaway
In the second quarter of 2022, billionaire Warren Buffett’s Berkshire Hathaway reported a deficit of $43.8 billion but an operational profit of $9.283 billion.
The Geico vehicle insurer’s new losses were offset by gains from reinsurance and the BNSF railroad, which boosted accident claims as a result of parts shortages and rising used car costs.
It was an increase of 38.8 per cent over the same quarter a year earlier. Profits from the conglomerate’s multiple industries, including insurance, rail-roads, and utilities, are included in operating earnings.
Berkshire reported that a mainly unrealised $53 billion decline in the value of its investments prompted it to register a loss of $43.8 billion.
The findings “the results show Berkshire’s resilience” according to Edward Jones & Co analyst James Shanahan, who was quoted by Reuters. Berkshire was likewise given a “neutral” rating by Shanahan.
Because of Buffett’s fame and the fact that the performance of the conglomerate’s numerous operating divisions typically mirrors broader economic trends, investors pay close attention to Berkshire.
In addition to the energy company named after it, various industrial enterprises and well-known consumer brands including Dairy Queen, Duracell, Fruit of the Loom and See’s Candies also contribute to the overall financial health of the company.
Buffet has steadily increased Berkshire’s stake in Occidental Petroleum since March, bringing Berkshire’s stake in the $10.9 billion company up to 19.4%.
This year, Occidental has outperformed all other stocks in the S&P 500, with its price more than doubling as a result of the increase in the price of crude.