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American investor star Warren Buffett’s Berkshire Hathaway holding significantly increased its first-quarter operating profit despite the crown crisis.
Compared to the previous year, profits rose in the three months to the end of March by about six percent to $ 5.9 billion (€ 5.3 billion), as Berkshire Hathaway said in Omaha on Saturday. In the important insurance division, revenues grew strongly.
Berkshire, meanwhile, posted a record loss of $ 50 billion in net income, as the recent stock market crisis greatly reduced many stocks. However, this indicator is considered inappropriate as a criterion for the course of business, as it is distorted by the report of unrealized investment gains and losses and fluctuates greatly. For comparison, there was a surplus of $ 21.7 billion in the same period last year.
However, the pressure on 89-year-old Buffett to invest Berkshire Hathaway’s high cash reserves does not lessen in the crisis. At the end of the quarter, the stock market guru had $ 137 billion in cash, almost $ 10 billion more than a quarter earlier. Financial markets have been waiting for their next big business for years. Buffett has struggled with acquisitions for a long time because valuations are too high for him.
Until now, the investor legend has remained relatively covered by the Corona crisis, but that could change this weekend. His supporters eagerly awaited what Buffett would say about the financial markets situation at the Berkshire Hathaway general meeting on Saturday night (CEST). The event, which is actually known as the “Capitalists’ Woodstock” and which generally draws tens of thousands to Omaha in Nebraska, this time can only take place on the Internet due to the pandemic.
/ hbr / DP / nas
OMAHA (dpa-AFX)
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