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Warren Buffett’s Berkshire Hathaway reported a $43.76 billion loss in the second quarter as the value of the company’s investments plummeted, in what was a tumultuous quarter for the markets.
Berkshire said Saturday that a largely unrealized $53 billion decline in the value of its investments forced it to report a loss of nearly $44 billion, or $29,754 per Class A share. That is down from $28.1 billion, or $18,488 per Class A share, a year ago.
Buffett has long said he believes Berkshire’s operating earnings are a better measure of the company’s performance because they exclude investment gains and losses, which can vary widely quarter to quarter.
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By that measure, Berkshire’s earnings were up significantly to $9.28 billion, or $6,312.49 per Class A share from last year’s $6.69 billion, or $4,399.92 per Class A share.
Berkshire Hathaway CEO Warren Buffett (FBN)
Analysts covering Berkshire expected the company to report operating earnings per Class A share of $4,741.64.
Berkshire said its revenue grew more than 10% to $76.2 billion in the quarter as many of its businesses increased prices.
Berkshire’s many companies still performed well, suggesting the overall economy is weathering the pressure from inflation and rising interest rates.
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It was a rough quarter for shares of three of Berkshire’s biggest investments — Apple, American Express and Bank of America.
|AXP||AMERICAN EXPRESS CO.||157.51||+0.64||+0.41%|
|BAC||BANK OF AMERICA CORP.||33.96||+0.56||+1.68%|
They all fell significantly during the second quarter, but rebounded during the third quarter, boosting the value of Berkshire’s portfolio since the end of the quarter.
A BNSF freight train with 76 container cars and FedEx freight trailers travels from Seattle to points east. ( (Photo by William Campbell/Getty Images) / Getty Images)
Besides investments, Berkshire owns more than 90 companies outright. Berkshire said operating …….