Huge loss to Berkshire Hathaway

(ABM FN-Dow Jones) Berkshire Hathaway suffered a loss in the second quarter of 2022, but operationally the company was much better than in the same period last year. This was revealed on Saturday from the results of the company that is still led by the renowned investor Warren Buffett.

In the quarter, net income fell to a loss of $43.8 billion, from a profit of $28.1 billion in the second quarter of 2021.

In contrast to the net result, the operating result improved considerably, from a profit of 6.7 billion to a plus of 9.3 billion dollars. All Berkshire divisions contributed to this profit increase.

Berkshire made a profit of $16.3 billion in the first half. That was $13.7 billion in the first half of 2021.

According to Buffett, operating income provides a much better picture of how the company is performing than net income, in which accounting rules require Berkshire to account for unrealized investor gains and losses.

“We believe that gains and losses from investments and derivatives… are generally meaningless for understanding our reported quarterly or annual results or evaluating the economic performance of our companies,” Berkshire said in a statement.

At the end of the second quarter, Berkshire had approximately $105 billion in cash. That is about a billion less than at the end of the first quarter. Berkshire bought back its own shares at a significantly slower pace.

Bron: ABM Financial News

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From Beursplein 5, the editors of ABM Financial News keep a close eye on developments on the stock exchanges, and the Amsterdam stock exchange in particular. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.