Berkshire Hathaway lost $ 50 billion in the last quarter when Warren Buffett’s investments were hit by the coronavirus

05/02/2020 Business

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TOPLINE

Billionaire Warren Buffett’s famous investor conglomerate, Berkshire Hathaway, reported a net loss of nearly $ 50 billion in the first quarter as the coronavirus-driven market sell-off had a significant effect on the stock holdings of the company.

Win Berkshire Hathaway — Operating profit increased, even as the company posted a record loss in the last quarter.

Nati Harnik / ASSOCIATED PRESS

KEY FACTS

Berkshire posted a record net loss of $ 49.75 billion in the first quarter, down from $ 21.7 billion in profits last year.

That equates to a loss of $ 30,653 per share, compared to earnings of $ 13,209 per share in the first quarter of 2019.

Despite the fact that the coronavirus damaged the company’s business, Berkshire’s operating profit increased 6% to $ 5.87 billion, up from $ 5.56 billion the year before.

Berkshire’s quarterly presentation makes 31 references to the coronavirus, showing the substantial impact of the pandemic on the company so far in 2020.

In the first quarter, many of Buffett’s largest equity holdings, including big banks and airlines, slumped even further than the benchmark S&P 500 index, which fell 20% during that period.

Buffett’s cash increased from $ 125 billion to $ 137.3 billion, as the Omaha Oracle continues to seek an acquisition the size of an elephant.

Key background

Buffett emerged as a key player who helped restore confidence in the markets during the 2008 financial crisis, but remained relatively calm during the 2020 coronavirus recession. Charlie Munger, Vice President of Berkshire Hathaway
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said to Wall street journal Recently that the Omaha Oracle is being “quite conservative” with its investments in today’s market. He also admitted that some of the smaller Berkshire companies could do it entirely. Companies are reportedly not calling Berkshire for capital as they were in 2008: “The phone is not ringing,” Munger confirmedadding that the airlines “are negotiating with the government, but they are not calling Warren.”

Crucial statistic

Berkshire Hathaway shares fell 20% so far this year, compared with a 13% decline for the S&P 500.

Tangent

Warren Buffett is the fourth richest person in the world, with a net worth of $ 72 billion, according to Forbes‘ Dear.

What to look at

Berkshire’s first annual online shareholder meeting will take place today at 4:45 p.m. ET.

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