Warren Buffett’s company reported a nearly US$50-billion loss on Saturday because of a huge drop in the paper value of its investments, though the company is still sitting on a huge pile of cash.
Berkshire Hathaway Inc. said it lost $49.7-billion, or $30,653 per Class A share, during the first quarter. That’s down from last year’s profit of $21.66-billion, or $13,209 per Class A share.
The biggest factor in the loss was a $54.5-billion loss on the value of Berkshire’s investment portfolio as the stock market declined sharply after the coronavirus outbreak began. The year before, Berkshire’s investments added $15.5-billion to the company’s profits.
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Buffett has long said Berkshire’s operating earnings offer a better view of quarterly performance because they exclude investments and derivatives, which can vary widely. By that measure, Berkshire’s operating earnings improved to $5.87-billion, or $3,617.62 per Class A share, from $5.56-billion, or $3,387.56 per Class A share.
Analysts surveyed by FactSet expected operating earnings per Class A share of $3,796.90 on average.
Berkshire’s revenue grew 1 per cent to $61.27-billion.
Berkshire is sitting on a pile of more than $137-billion cash because Buffett has struggled to find major acquisitions for the company recently
On Saturday afternoon, Buffett plans to lead an abbreviated online version of Berkshire’s annual meeting without any of the roughly 40,000 shareholders who typically attend. The company shifted to an online meeting and cancelled all the events surrounding the event because of the coronavirus outbreak.
Berkshire Hathaway Inc. owns more than 90 companies, including BNSF Railway Co. and insurance, utility, furniture and jewellery businesses. The company also has major investments in such companies as Apple, American Express, Coca-Cola and Bank of America.
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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
