[ad_1]
Berkshire Hathaway, the holding of the famous financier, has been greatly affected by the decline in equity values on Wall Street
by Riccardo Barlaam
2 ‘reading
Berkshire Hathaway, the holding company headed by Warren buffett, was hit hard by the coronavirus pandemic. A few hours after the annual shareholders meeting, which this year will take place in streaming video, omaha oracle society released first quarter results seeing one net loss close to 50 billion dollars ($ 49.7 billion, to be precise) due to the general wave of sales in the equity markets that has had an impact on its investment portfolio.
The losses are mainly related to the drop of 54.5 billion, equivalent to $ 30,653 per Class A share, in the value of the company’s portfolio of securities. Last year in the first quarter Berkshire had reported net earnings for $ 21.6 billion, or $ 13,209 per Class A share. According to the press release, 90 companies reported “minor to more significant negative effects,” with a more noticeable slowdown in revenue in April. Since the beginning of the year, the value of Buffett’s shares It has decreased by 19%, more than the S&P 500 index, which has so far totaled minus 12%.
“The amount of investment gains and losses in each quarter is meaningless, the company explains in a statement, and offers information that can be very misleading for investors who know little and nothing about accounting rules.” Despite the red from the stock market crash, in the first three months of the year, Berkshire Hathaway saw its liquidity increase to 137 billion (it was 128 billion at the end of 2019) and its operating profit of 5.7%, at $ 5.9 billion.
