Berkshire Hathaway, the firm of billionaire Warren Buffett, lost $ 23.451 million between January and June, after a second quarter in which it recovered just over half of the crash it had suffered in the first.
The company based in Omaha (Nebraska) announced a net profit of US $ 26,295 million between April and June, compared to US $ 14,073 million in the same period of the previous year, figures driven by the stock market recovery after the initial impact of the coronavirus crisis.
That shock had caused Berkshire Hathaway to lose nearly $ 50 billion in the first three months of the year.
The accounts of Buffett’s firm have been especially volatile since 2018 due to an accounting standard that came into force then and that requires the inclusion of the change in the value of the shares in its possession, which given its enormous portfolio causes large movements depending on the direction of the markets.
The famous investor, who is very critical of these accounting rules, always points to operating profits as a more reliable way of looking at the performance of his company.
Between January and June, Berkshire Hathaway had an operating profit of US $ 11,423 million, slightly below what it registered in the same period of 2019.
In addition to a large portfolio of stocks, including holdings in Apple or Bank of America, Buffett’s firm directly controls businesses in various sectors, including energy, insurance, retail and manufacturing.
In the second quarter, a book loss of about $ 9.8 billion was posted linked to Precision Castparts, a company it bought in 2016 for about $ 32 billion and that makes parts for aircraft manufacturers and other industries.
In addition, during this period Berkshire Hathaway got rid of airline shares and expanded its buyback program for its own securities to about $ 6.7 billion, $ 5 billion more than in the first quarter.