Berkshire’s cash stake was also allowed to rise to a record $137.3 billion from $128 billion at the end of 2019 by Warren Buffett.
Berkshire Hathaway Inc, owned by Warren Buffett, is being badly affected by the COVID-19 pandemic, posting a record quarterly net loss of nearly $50 billion on Saturday and saying performance is suffering in several major operating businesses.
More than 90 businesses are facing “relatively minor to severe” negative impacts from the novel coronavirus which is now punishing the global economy, with revenue slackening considerably in April even at businesses deemed “essential,” Berkshire said.
The BNSF railroad saw freight volumes of consumer products and coal decrease, while Geico set aside funds for car insurance premiums it no longer anticipates to collect. Some companies cut pay and furloughed employees, and retailers such as See’s Candies and the Nebraska Furniture Mart shut stores.
Berkshire’s cash stake also rose to a record $137.3 billion from $128 billion at the end of 2019.
That indicated the 89-year-old billionaire’s incapacity to make large, “elephant” size acquisitions for his Nebraska-based conglomerate, Omaha, and attention in buying stocks.
Berkshire said it purchased only a net $1.8 billion of stocks in the first quarter.
Berkshire published results before its annual meeting, where Warren Buffett said Berkshire in April sold its “entire positions” in the four largest U.S. airlines: American, Delta, Southwest and United.
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First-quarter net loss for Berkshire was $49.75 billion, or $30,653 per Class A share, reflecting $54.52 billion of losses on stock and other investments. Net earnings were $21.66 billion, or $13,209 per share, a year ago.
Many Berkshire stock investments fared worse than the S&P in the first quarter, including American Express, Bank of America, Wells Fargo and the four airlines.
The United States has entered into a grim situation as it recorded its one-millionth case of COVID-19, about one-third of the entire world’s caseload, as per Johns Hopkins University data.
Globally, the total number of COVID-19 cases topped 3,400,000 while the death toll crossed 243,000, as per the latest data from Johns Hopkins University.
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