ZCZC
BCN-05
HEALTH-VIRUS-EARNINGS
Warren Buffett’s company reports Q1 loss of $50 bln
WASHINGTON, May 2, 2020 (BSS/AFP) – Hard-hit by the market rout surrounding
the coronavirus pandemic, Berkshire Hathaway, the holding company of Warren
Buffett, has reported first-quarter net losses of nearly $50 billion, it
reported Saturday.
The celebrated billionaire, considered one of the world’s savviest
investors, said a better measure of the company’s performance was its
operating earnings, which exclude investments and are less subject to sharp
fluctuations.
By that measure, Berkshire Hathaway saw growth to $5.9 billion from $5.55
billion a year earlier.
The brutal drop in the net — to a loss of $49.75 billion from a profit
last year of $21.7 billion — resulted primarily from the drop in value of
its wide-ranging portfolio of investments amid fears over the economic impact
of the global pandemic.
A year earlier, the conglomerate reported profits of $15.5 billion.
Buffett had predicted that a 2018 accounting rule would create “wild and
capricious swings” in the company’s reported profits or losses.
BSS/AFP/MRU/2040hrs