Warren Buffett’s firm lost $43.76 billion in the second quarter as the paper value of its assets fell and he acquired many fewer equities, but Berkshire Hathaway’s many running companies did well overall, according to several world news media.
Berkshire announced on Saturday that a $53 billion decrease in the value of its investments, primarily unrealized, prompted it to disclose a loss of about $44 billion, or $29,754 per Class A share. This is a decrease from $28.1 billion, or $18,488 per Class A share, a year earlier.
Berkshire’s operational earnings, according to Buffett, are a better gauge of the company’s performance since they remove investment gains and losses, which can vary greatly from quarter to quarter. Berkshire’s earnings increased dramatically to $9.28 billion, or $6,312.49 per Class A share, from $6.69 billion, or $4,399.92 per Class A share, the previous year.
During the second quarter, the stock prices of three of Berkshire’s largest assets, Apple, American Express, and Bank of America, all plummeted sharply. But during the third quarter, all of these stocks went up in value, which means that Berkshire’s portfolio is now worth more than it was at the end of the quarter.
