Berkshire’s available cash expands to a record, even if stock prices drop sharply-Bloomberg

Investment and insurance company run by well-known American investor Warren BuffettIn late March, Berkshire Hathaway announced that it had a record cash amount of $ 137 billion at the end of March (approximately 14.65 billion yen). With the spread of the new coronavirus infection, cash holdings expanded as the effects of the suspension of economic activity in the United States began to spread.

Buffett has long waited for stock prices to become more attractive, but the stock market crash in January-March (first quarter) reveals that he doesn’t appear to have a chance to lift his finger. He turned. The company said it had released more than $ 6 billion in shares in April and that it may have more cash available.

Berkshire’s stance contrasts with the 2008 financial crisis. At the time, the company was investing abundant cash to acquire attractive preferred shares and rescue businesses that were on the verge of bankruptcy.

⇒ Berkshire’s operating income in January-March increased approximately 6% to $ 5.87 billion. Strong investment portfolio in the covered insurance business, despite a net loss of $ 49.7 billion, primarily due to an unrealized loss of $ 55.5 billion in the large equity portfolio.

The company reported to authorities on Day 2, saying, “Efforts to contain the new infectious disease Corona (COVID19) were strengthened in the second half of March and continued in April, and most of our business was negative. There are impacts. , and the shocks so far have ranged from relatively minor to severe. “

Berkshire’s share price fell sharply quarterly for the first time in about 10 years, but the company reduced its share buybacks. On the other hand, stock trading in April was $ 6.1 billion in net sales, well above net purchases of $ 1.8 billion in the January-March quarter.

Original title: $ 137 billion (3) “target =” _ blank “>Buffett remains on the sidelines with the increase in cash to $ 137 billion (3) (extract)