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The corona virus has carried nearly $ 50 billion from Warren Buffett’s Berkshire Hathaway company in the first quarter, according to the quarterly report released Saturday afternoon. The investor legend company had higher operating income, but had massive losses on financial investments.
At the same time, the company’s cash portfolio continues to grow, and is now worth up to $ 137 billion.
CNBC writes on Friday that there is great excitement about whether Buffett has found some attractive investments to use the gigantic cash shares now, and whether he will speak about this during the company’s general meeting on Saturday.
“Cash is not generating returns at this time, so some capital needs to be invested,” Greg Womack, a shareholder at Berkshire Womack Investment Advisers, told CNBC.
“Woodstock for capitalists
The company’s general meeting is traditionally a massive annual meeting for financial stakeholders.
Every year, tens of thousands of shareholders and fans flock to the legendary Omaha investor’s hometown to attend the event called “Woodstock for Capitalists.”
This year, the big “festival” in Omaha was canceled due to the crown eruption and the general meeting is being held digitally on Saturday night, Norwegian time.
There is great excitement in what Buffett will say to warn or reassure investors today. Until now, during the crown crisis, it has been silent.
– Warren Buffett’s silence has been deafening for the past two troubled months, writes Julian Emanuel, chief strategist at investment bank BTIG, in a note reproduced by Marketwatch.
“We are conservative”
Buffett and his second-in-command, Charlie Munger (96), are known to attack when good buying opportunities arise. Shares of the “Oracle of Omaha,” including General Electric and Goldman Sachs, for tens of billions of dollars during the financial crisis. Berkshire has done nothing similar during the crown crisis.
– I’d say we are like a captain on a ship when the worst storm we’ve seen is on the way. We just want to get through the storm, and we prefer to go out very liquid, ”Munger told the Wall Street Journal two weeks ago.
He did not rule out the possibility that they could do drastic things or take advantage of opportunities.
“But we are conservative,” said Munger.
He will not attend Saturday’s digital general assembly.
Neither did Ajit Jain (68), one of the two people who consider themselves possible heirs. The other assumed candidate to take over, Greg Abel, 57, will line up and answer questions with Buffett on Saturday.
Has not beaten S&P
Berkshire Hathaway has historically crushed Wall Street. An investment in the Warren Buffett and Charlie Munger company has produced twice as much profit as Wall Street in the past 20 years.
But the living legend has been struggling more lately. In the past five years, the S&P 500 Index has increased more than Berkshire Hathaway shares.
In late February, Berkshire Hathaway’s annual report and Buffett’s traditional letter to shareholders arrived.
It emerged that during the last three months of last year, Berkshire Hathaway repurchased shares totaling $ 2.2 billion – more money in share repurchases that the company has not spent in a quarter. (Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our cases using a link, which links directly to our pages. Copying or any other use of all or part of the content may only be made with written permission or as permitted by law. For more terms see here.
