not vested
Berkshire Hathaway net soars to US$26.3b, takes US$10b writedownWarren Buffett’s company reported an 87 percent jump in its second-quarter profit as the value of its investment portfolio increased with the stock market, but it took a roughly US$10 billion write down on the value of its
aircraft parts manufacturing business because of the economic impact of the coronavirus pandemic.
Berkshire Hathaway Inc. said Saturday that it earned US$26.3 billion, or US$16,314 per Class A share, during the second quarter. That’s up from US$14.1 billion, or US$8,608 per share, a year ago.
Berkshire said it cut the value of its
Precision Castparts unit because of how much the pandemic has hurt air travel and businesses that support that airline industry.
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 declined by 10 percent to US$5.5 billion, or US$3,420.48 per Class A share, as most of its businesses were hurt by restrictions related to the coronavirus pandemic. That’s down from US$6.1 billion, or US$3,754.83 per share.
The analysts surveyed by FactSet expected operating earnings per Class A share of US$3,182.06.
Berkshire was holding nearly
US$147 billion cash and short-term investments at the end of the second quarter, but Buffett did use US$5.1 billion during the quarter to repurchase Berkshire shares.
Buffett also found a way to use more of that cash after the quarter ended. First, he agreed to buy Dominion Energy’s natural gas pipeline and storage business for US$4 billion and take on $5.7 billion of Dominion debt. Then Buffett’s company bought roughly US$2.1 billion worth of Bank of America stock in late July and early August to give it control of 11.9 percent of the bank’s stock.
Berkshire Hathaway Inc. owns more than 90 companies, including 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.
Source: AP
https://www.thestandard.com.hk/breaking ... -writedown
It's all about "how much you made when you were right" & "how little you lost when you were wrong"