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Billionaire Warren Buffett’s Berkshire Hathaway Group on Saturday reported record quarterly losses of $ 50 billion due to the coronavirus pandemic, saying the performance of several major businesses is affected, Reuters reports, quoted by News.ro.
According to Berkshire, most of the more than 90 companies in the group face “relatively minor to severe” negative effects from COVID-19, the disease caused by the new coronavirus that affects the entire world economy, and revenue fell sharply even in April. operations considered “essential”.
The volume of coal and consumer goods transported by rail operator BNSF decreased, while insurance group Geico allocated funds for auto insurance premiums that they are no longer expected to collect. Some of the group companies cut wages and laid off employees, and retailers like See’s Candies and Nebraska Furniture Mart closed their stores.
Buffett allowed Berkshire’s cash supply to grow to a record $ 137.3 billion, from $ 128 billion in late 2019.
The increase reflects the billionaire’s inability to make major acquisitions for the Omaha-based conglomerate and his reluctance to buy shares.
Berkshire bought $ 1.8 billion in equity in the first quarter and sold $ 6.1 billion in stock. The group repurchased $ 1.7 billion in treasury stock, less than the previous quarter.
“Over time, Buffett has been visible in times of crisis, encouraging investors to take advantage of shares sold in the market, but if he doesn’t see opportunities in his own shares, what do we believe?” Said Jim Shanahan, analyst at Edward Jones of St. Louis.
Shanahan said Berkshire “is as well positioned as possible,” reflecting diversified business and substantial liquidity and access to capital. The analyst recommends the purchase of Berkshire shares.
photo source: internewcast.com
