Contrary to popular belief, you can lose a lot of money in the stock market. Thus, the Berkshire Hathaway Holding Company of the famous investor Warren Buffett revealed, on Saturday, a staggering net loss of nearly $ 44 billion in the second quarter, as a result of the decline in its shares in the stock markets, which were severely shaken during that. a period. The first half of 2022 was already the worst that the New York Stock Exchange had known since 1970. And this is not the first time that the holding company has recorded such a loss: already in the first quarter of 2020, the defeat of the stock exchanges by the pandemic cost Berkshire Hathaway nearly 50 Billion dollar.
A portfolio of about fifty shares
Between April and June 2022, investment losses in the markets totaled $53 billion. It cannot be compensated for by its operating profit, which grew 39% during the period to $9.28 billion thanks to insurance and activities in rail. wallet Berkshire Hathaway is invested in about fifty companies, all of them American : From insurance companies to trains by way of energy and frozen desserts.
In total, the group lost $43.8 billion in the quarter, when it won $28 billion last year at the same time. “The amount of investment gains/losses in a particular quarter is generally meaningless”Berkshire Hathaway is upset in its earnings statement.
The holding company, in the first quarter, bought more than $51 billion in shares, notably overtaking the oil giant Chevron in the top four of its investments along with American Express, Apple and Bank of America.
Greg Appel, future successor to Warren Buffett
It also acquired 14% of Occidental Petroleum, increased its stake in computer and printer maker HP as well as video game publisher Activision – in the process of being acquired by Microsoft – and planned to buy Alleghany Insurance Company for $11.6 billion.
Canadian Greg Abel is named to succeed billionaire Warren Buffett Berkshire Hathaway, aka “l’Oracle d’Omaha” – Named after his hometown of Nebraska – which will celebrate his 92nd birthday at the end of the month.
Investors follow Berkshire Hathaway closely because its results, along with dozens of companies, generally reflect general economic trends.
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