Warren Buffett
Gerard Miller | CNBC
Berkshire Hathaway announced on Saturday that it was buying some of its own shares in the second quarter as the coronavirus pandemic plagued Warren Kongett’s conglomerate.
The company said it bought a total of $ 5.1 billion worth of inventory in May and June. Berkshire bought back more than $ 4.6 billion of its Class B shares and about $ 486.6 million in A shares.
Those purchases come at a difficult time for some of Berkshire’s wholly owned companies as the pandemic threatens economic activity in the US and around the world.
On an operational basis, Berkshire Hathaway lost $ 23.29 billion in the second quarter, the company released its most recent quarterly report. The company also took a charge of about $ 10 billion from Precision Castparts, Berkshire’s largest company in its manufacturing segment.
Investors and analysts argued for the possibility that Berkshire would report a strong net income along with weaker business results.
Berkshire is heavily invested in several companies that have grown since the broader stock market ended in late March. Apple – Berkshire’s largest joint shareholder – nearly doubled on March 23. JPMorgan Chase has risen more than 27% in that period and Amazon has jumped more than 66%.
These public markets are expected to drive Berkshire’s net income to record levels. However, Berkshire’s business results may not be nearly as impressive.
Berkshire Hathaway is owned by railway company BNSF, which could have taken a strong hit from the coronavirus pandemic, as much of the economy is struggling to reopen. Berkshire’s clothing companies probably struggled in the second quarter as well.
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