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The Omaha-based company reported a huge loss of $ 69 billion in its stock portfolio on Saturday, which largely included unrealized losses during the quarter.
The company sold $ 6.1 billion in shares in April, the earnings report showed.
Berkshire experienced an erosion of $ 68.48 billion in the company’s stock value as of March 31. It also suffered a loss of $ 410 million in investments, the company said.
Total investments in equity securities amounted to $ 180.78 billion as of March 31 compared to $ 248.02 billion as of December 31. This suggests a 27 percent impact on the portfolio compared to a 20 percent drop in the S & P500 index over the same period.
The acquisition costs of the shares were $ 113.24 billion, while the unrealized gains totaled $ 67.53 billion.
Berkshire said 69 percent of the aggregate fair value of its equity portfolio was concentrated in five companies: American Express Company ($ 13 billion), Apple Inc ($ 63.8 billion), Bank of America Corporation ($ 20.2 billion) ) The Coca-Cola Company ($ 17.7 billion) and Wells Fargo & Company ($ 9.9 billion).
Apple shares fell 13 percent during the quarter to $ 254 from about $ 294 each as of December 31. Bank America fell 40 percent to $ 21.23 billion each. Coca Cola shares fell 20 percent, American Express Company 37 percent, while Wells Fargo & Company fell 47 percent.
Berkshire said it realized $ 6.1 billion from the sale of equity securities in April. Profits from these activities have been mainly reinvested in United States Treasury bills, he said.
In its quarterly earnings, Berkshire said: “We believe that investment and derivative gains / losses, whether made by provision or not made by changes in market prices of equity securities, generally do not make sense to understand our results. reported or evaluate the economic performance of our businesses. ”
“These gains and losses have caused and will continue to cause significant volatility in our periodic earnings,” the statement said.
In January and February, Berkshire received revenues of approximately $ 2.2 billion and $ 2.1 billion, respectively, from sales of equity securities.
“The unrealized losses in the first quarter of 2020 reflected widespread falls in the prices of equity securities in the United States and internationally. Taxable investment earnings on equity securities sold in the first quarter, which is the difference between sales revenue and the original cost basis of the securities sold, were $ 1.2 billion in 2020 and $ 518 million in 2019 “The company said.
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