TOPLINE
Billionaire Warren Buffett’s famed investing conglomerate, Berkshire Hathaway, reported a massive net loss of nearly $50 billion in the first quarter, as the coronavirus-driven market sell-off took a significant toll on the company’s stock holdings.
Operating profits rose, even as the company posted a record loss last quarter.
Nati Harnik/ASSOCIATED PRESS
KEY FACTS
Berkshire posted a record net loss of $49.75 billion in the first quarter—down from $21.7 billion in profit last year.
That amounts to a loss of $30,653 per share, compared to profits of $13,209 per share in the first quarter of 2019.
Even as the coronavirus hurt the company’s business, Berkshire’s operating profit rose 6% to $5.87 billion, up from $5.56 billion a year ago.
Berkshire’s quarterly filing makes 31 references to coronavirus, showing the pandemic’s substantial impact on the company so far in 2020.
The first quarter saw many of Buffett’s largest stock holdings—including big banks and airlines, plummet even further than the benchmark S&P 500, which fell 20% during that period.
Buffett’s cash pile is up from $125 billion to $137.3 billion, as the Oracle of Omaha continues to look for an elephant-sized acquisition.
Key background
Buffett emerged as a key player who helped restore confidence in the markets during the 2008 financial crisis, but he’s remained relatively quiet during the 2020 coronavirus downturn. Charlie Munger, vice chairman at Berkshire Hathaway
BRK.B
Crucial statistic
Berkshire Hathaway’s stock is down 20% so far this year, compared to a 13% decline for the S&P 500.
Tangent
Warren Buffett is the world’s fourth-richest person, with a net worth of $72 billion, according to Forbes’ estimates.
What to watch for
Berkshire’s first-ever online annual shareholders meeting will take place later today, at 4:45 p.m. ET.
Further reading
What Is Warren Buffett Up To? Berkshire Swooped In During 2008, But What’s Its Power Play For 2020? (Forbes)
Here’s What Warren Buffett Says About The Coronavirus And His Outlook On Stocks (Forbes)
Here’s Why One Of Warren Buffett’s Favorite Stocks Might Be Poised For A Rebound (Forbes)
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