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Warren Buffett’s Berkshire Hathaway reported a second-quarter loss of $43.76 billion as the value of the company’s investments fell, in a tumultuous quarter for markets.
Berkshire said on Saturday that a largely unrealized decline of $53 billion in the value of its investments forced it to report a loss of nearly $44 billion, or $29,754 per Class A share. is down from $28.1 billion, or $18,488 per Class A share, a year ago.
Buffett has long said he believes Berkshire operating profit are a better measure of business performance because they exclude investment gains and losses, which can vary significantly from quarter to quarter.
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By this measure, Berkshire’s revenue increased significantly to $9.28 billion, or $6,312.49 per Class A share, from $6.69 billion last year, or $4,399.92 per Class A share.
Warren Buffett, CEO of Berkshire Hathaway (NBF)
Analysts covering Berkshire had expected the company to report operating income per Class A share of $4,741.64.
Berkshire said its revenue rose more than 10% to $76.2 billion in the quarter as many of its businesses raised prices.
Berkshire’s many businesses have consistently performed well, suggesting that the overall economy is holding up to pressure from inflation and rising interest rates.
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It was a tough quarter for stocks in three of the Berkshire’s Biggest Investments — Apple, American Express and Bank of America.
| Teleprinter | Security | Last | To change | To change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 165.35 | -0.23 | -0.14% |
| AXP | AMERICAN EXPRESS CO. | 157.51 | +0.64 | +0.41% |
| BAC | BANK OF AMERICA CORP. | 33.96 | +0.56 | +1.68% |
They all fell significantly in the second quarter, but rebounded in the third quarter, increasing the value of Berkshire’s portfolio since the end of the quarter.
A BNSF freight train with 76 container cars and FedEx freight trailers moves from Seattle to points east. ((Photo by William Campbell/Getty Images)/Getty Images)
Besides investments, Berkshire owns more than 90 companies. Berkshire said operating profits were up across all of its major units, including its insurance companies, major utilities and railroad BNSF.
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Berkshire reported a pretax underwriting loss of $487 million at Geico, which reported higher auto claims losses due to rising vehicle values and continued auto parts shortages.
In this photo illustration the Government Employees Insurance Company (GEICO) logo seen displayed displayed on a smartphone. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images/Getty Images)
Berkshire is often seen as a microcosm of the broader economy, as its set of manufacturing, retail, insurance, utility and service businesses touch many different industries, and Berkshire’s profits tend to follow whatever the economy does.
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Berkshire said it had $105.4 billion in cash at the end of the quarter, little changed from the reported $106 billion at the end of the first quarter.
The Associated Press contributed to this report.