Warren Buffett’s Berkshire Hathaway posts record loss of almost $50 billion as pandemic pummels investments

Warren Buffett’s Berkshire Hathaway Inc on Saturday posted a record net loss of nearly US$50 billion as the coronavirus pandemic pummelled its common stock investments, but operating profit rose even as COVID-19 hurt its businesses.

Berkshire’s first-quarter net loss totalled US$49.75 billion, or US$30,653 per Class A share, reflecting US$54.52 billion of losses from investments, mainly common stocks. A year earlier, net earnings totalled US$21.66 billion, or US$13,209 per share.

Quarterly operating profit, which Buffett considers a better performance measure, rose 6 per cent to US$5.87 billion, or about US$3,624 per Class A share US$5.56 billion, or about US$3,388 per share.

An accounting rule requires Berkshire to report unrealized stock losses and gains with earnings. This causes huge swings in Berkshire’s net results that Buffett considers meaningless.

Nonetheless, Berkshire has loaded up on stocks in part because of Buffett’s inability to find large companies to buy outright, a drought that

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Germany’s confirmed coronavirus cases rise by 793 to 162,496: RKI By Reuters

BERLIN (Reuters) – The number of confirmed coronavirus cases in Germany increased by 793 to 162,496, data from the Robert Koch Institute (RKI) for infectious diseases showed on Sunday.

The reported death toll rose by 74 to 6,649, the tally showed.

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Warren Buffett says Berkshire is reversing course on airlines—again

Warren Buffett is reversing course on his airlines bet — again.

The billionaire investor said Berkshire Hathaway Inc. completely exited its stakes in the four major U.S. airlines. The sales of shares of Delta Air Lines Inc., Southwest Airlines Co., American Airlines Group Inc. and United Airlines Holdings Inc. made up most of the company’s $6.5 billion in equity sales in April.

During his live-streamed annual meeting, Buffett said the business has fundamentally changed following the economic fallout from the coronavirus pandemic. He declined to blame the performance of the airline CEOs, adding that he doesn’t envy their jobs, especially in a period like this.

“The world changed for airlines and I wish them well,” Buffett said Saturday in a webcast. He clarified that he made the decision and that he lost money on his investments. “That was my mistake.”

Buffett’s had a complicated relationship with the airline industry over … Read More