Daily Management Review

Berkshire Hathaway lose $44 billion in a quarter


Warren Buffett's investment company Berkshire Hathaway reported a net loss of $43.8 billion at the end of the second quarter.

A broad market decrease was the primary cause of the unprofitable quarter. As a result, the S&P 500 index declined by 16% during the third quarter, while shares of businesses like Apple, Bank of America, and American Express, in which Berkshire has large holdings, declined by more than 21%. As a result, Berkshire suffered total losses of $53 billion from investments and derivatives.

At that, the company continues to adhere to Warren Buffett's fundamental maxim, "Buy when the market is falling."

The amount of securities that Berkshire has invested in has dramatically increased. By the end of the quarter, the company had spent $45.2 billion more on assets than it had made. However, there were only $1 billion worth of Berkshire treasury shares outstanding. This sum was $3.2 billion in the year's first quarter.

source: bloomberg.com