Berkshire Hathaway posts $43.8 billion loss as stock holdings tumble
The slide in U.S. stock prices punished Berkshire Hathaway Inc’s bottom line in the second quarter, as the conglomerate run by billionaire Warren Buffett on Saturday reported a $43.8 billion loss.
Berkshire BRK-B-N nevertheless generated nearly $9.3 billion of operating profit, as gains from reinsurance and the BNSF railroad offset fresh losses at the Geico car insurer, where parts shortages and higher used vehicle prices boosted accident claims.
Rising interest rates and dividend payouts helped insurance businesses generate more money from investments, while the strengthening U.S. dollar boosted profit from European and Japanese debt investments.
Despite the huge net loss, “the results show Berkshire’s resilience,” said James Shanahan, an Edward Jones & Co analyst who rates Berkshire “neutral.”
“Businesses are performing well despite higher interest rates, inflation pressures and geopolitical …
More on: www.theglobeandmail.com