Berkshire Hathaway posts massive loss; operating results improve
The slide in US stock prices punished Berkshire Hathaway Inc''s bottom line in the second quarter as the company run by billionaire Warren Buffett posted a $43.8 billion loss. Berkshire nevertheless generated nearly $9.3 billion of profit from its operating businesses, as improvement from reinsurance and the BNSF railroad offset a loss at the Geico car insurer, where car parts shortages and higher vehicle prices boosted losses from accidents. Rising interest rates and dividend payouts helped Berkshire''s insurance units generate more money from investments, while the strengthening U.S. dollar boosted profit from the company''s European and Japanese debt investments. Berkshire also slowed purchases of its stocks, including its own, though it ended June with $105.4 billion of cash and equivalents it could still deploy. "It shows the fickle nature of markets," said Tom Russo, a partner at Gardner, Russo Quinn in Lancaster, Pennsylvania, who invests more than $8 billion, of which 17% is in Berkshire.
Berkshire Hathaway posts massive loss; operating results improve
The slide in US stock prices punished Berkshire Hathaway Inc''s bottom line in the second quarter as the company run by billionaire Warren Buffett posted a $43.8 billion loss. Berkshire nevertheless generated nearly $9.3 billion of profit from its operating businesses, as improvement from reinsurance and the BNSF railroad offset a loss at the Geico car insurer, where car parts shortages and higher vehicle prices boosted losses from accidents. Rising interest rates and dividend payouts helped Berkshire''s insurance units generate more money from investments, while the strengthening U.S. dollar boosted profit from the company''s European and Japanese debt investments. Berkshire also slowed purchases of its stocks, including its own, though it ended June with $105.4 billion of cash and equivalents it could still deploy. "It shows the fickle nature of markets," said Tom Russo, a partner at Gardner, Russo Quinn in Lancaster, Pennsylvania, who invests more than $8 billion, of which 17% is in Berkshire.