Buffett's Berkshire Hathaway posts record loss on coronavirus, but operating profit rises

Quarterly operating profit, which Buffett considers a better performance measure, rose 6 percent to $5.87 billion from $5.56 billion.

May 02, 2020 / 07:14 PM IST

Warren Buffett's Berkshire Hathaway Inc posted a higher operating profit on May 2, but the coronavirus pandemic pummeled its common stock investments and led to a record net loss.

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

Quarterly operating profit, which Buffett considers a better performance measure, rose 6 percent to $5.87 billion from $5.56 billion.

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.
Reuters
first published: May 2, 2020 07:14 pm

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