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The stock market crash due to the impact of the coronavirus hit Berkshire Hathaway, despite reporting an increase in its operating profit.
Berkshire Hathawayde Warren Buffett posted a record net loss of nearly $ 50 billion this Saturday as the coronavirus pandemic hit his investments in common stock, but operating profit increased despite Covid-19 damage to its businesses.
Berkshire’s first-quarter net loss totaled $ 49.75 billion, or $ 30.65 per Class A share, reflecting $ 54.52 billion in investment losses, primarily ordinary shares. A year earlier, net earnings totaled $ 21.66 billion, or $ 13.20 per share.
Quarterly operating profit, which Buffett considers a better performance measure, increased 6% to $ 5.87 billion, or about $ 3.62 per Class A share.
An accounting rule requires Berkshire to report profit and loss on unrealized stock with profit. This causes major changes in Berkshire’s net results that Buffett considers to be pointless.
However, Berkshire has been loaded with shares in part due to Buffett’s inability to find large companies to buy directly, a drought that has lasted more than four years and left Berkshire with around $ 137.3 billion in cash.
The S&P 500 stock index fell 20% in the first quarter, but there were steeper declines in several large Berkshire investments, including American Express, Bank of America, Wells Fargo and four airlines: American, Delta, Southwest and United.
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