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The investment firm of star investor Warren Buffett (89), Berkshire Hathaway, has been in deep red in the coronavirus crisis. First quarter loss was $ 49.75 billion after a gain of $ 21.66 billion a year earlier.
Operationally, according to a press release on Saturday (local time), the investment company earned $ 5.87 billion, six percent more than the year before.
However, accounting standards stipulate that Berkshire must also report gains and losses on unrealized shares, he said. This led to high fluctuations in net income. Therefore, star investor Buffett considers this indicator to be meaningless and the operating profit is more significant.
“American magic has always won”
The company spoke of a “temporary setback” in the quarterly loss. At the same time, however, he admitted to facing uncertain times. It is unclear when standardization can be expected in the holding company’s various business areas. Due to the coronavirus crisis, the Berkshire Hathaway shareholders meeting was held as an online conference on Saturday.
Buffett believes that the United States will successfully tackle the coronavirus crisis. “Nothing can stop the United States, American magic has always triumphed,” the 89-year-old billionaire said Saturday at the general meeting of his investment company. «I will always bet in the United States for the rest of my life. The United States has already mastered other bad crises like the Great Depression and the civil war, “he said.
“I was wrong”
Berkshire Hathaway had parted ways with all the actions of the four largest US airlines in the coronavirus pandemic. Berkshire sold its stakes in Delta Air Lines, United Airlines, Southwest Airlines and American Airlines, Buffett said Saturday at the general meeting.
His company had invested between seven and eight billion dollars in the construction of the shares. However, Berkshire was unable to recover the amount of the sale, Buffett added. “It turned out he was wrong,” said the 89-year-old man about his investments.
$ 71 billion
The coronavirus pandemic hit the aviation industry hard. At the end of 2019, Berkshire had 11 percent on Delta Air Lines, 10 percent on American Airlines, 9 percent on United Airlines, and about 10 percent on Southwest Airlines.
Buffett has assets of $ 72 billion, according to the American magazine Forbes. The 89-year-old star investor is the fourth-richest person in the world. Berkshire Hathaway owns, among other things, significant shares in the Apple computer group, as well as financial groups such as American Express and Goldman Sachs. The holding company is also active in the insurance, rail and energy sectors. (pbe / SDA)
