Warren Buffett - Sitting on Pile of Cash Before Coronavirus3 May 2020 15:01
Warren Buffett’s company Berkshire Hathaway Inc. reported a nearly $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.
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.
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.
Berkshire’s revenue grew 1 percent 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.
Berkshire Hathaway Inc. owns more than 90 companies, including the BNSF railroad and insurance, utility, furniture and jewelry businesses. The company also has major investments in such companies as Apple, American Express, Coca-Cola and Bank of America.