Warren Buffett’s Berkshire Hathaway lost $ 50 billion in the first quarter

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Warren Buffett’s company reported a loss of nearly $ 50 billion on Saturday from a huge drop in the paper value of its investments, although the company is still sitting on a huge pile of cash. This is the latest sign of the economic impact of the new coronavirus on American companies.

Berkshire Hathaway Inc. said it lost $ 49.7 billion, or $ 30,653 per Class A share, in the first three months of this year. (Berkshire Hathaway has two share classes, of which the Class A shares are the most expensive and the main shares.) This is down from first quarter earnings of $ 21.66 billion last year. , or $ 13,209 per share. Berkshire shares closed at $ 273,262 on Friday.

The main driver of the loss was a $ 54.5 billion drop in the value of Berkshire’s investment portfolio as the stock market fell sharply after the start of the coronavirus epidemic. Berkshire investments added $ 15.5 billion to the company’s profits the year before.

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