The world’s most famous investor, Warren Buffett, holding company, Berkshire Hathaway Inc today posted a lower operating profit as the COVID-19 pandemic weighed on some of its holding segments.
Why it’s happening: In a report credited to Reuters, Berkshire Hathaway Inc explained it bought a record $9.3 billion of its underperforming stock in the quarter and $16 billion in 2020 as Buffett remained unable to find huge acquisitions to boost growth.
- Third-quarter operating profit dropped by 32% to $5.48 billion, or about $3,488 per Class A share, from $8.07 billion a year earlier.
- The holding company partly owned by Warren Buffet disclosed most of its operating business interests have been negatively affected by the COVID-19 pandemic, though in the Q3, many such businesses witnessed significant increases in earnings and growth from Q2.
Berkshire Hathaway had earlier printed a $26.3 billion Q2 profit but lost $49.75 billion in Q1. It ended September with $145.7 billion of cash and equivalents.
What you should know: Buffett is the chairman and largest shareholder of Berkshire Hathaway, the investment group according to the Bloomberg billionaire index is now worth $79.1 billion, unsurprisingly missing out of the top five rankings as it weighed on his company’s valuation.
Recall Nairametrics some months ago broke the news on Warren Buffett’s Berkshire Hathaway Inc buying a new 20.9 million shares in Toronto-based Barrick Gold Corp, one of the world’s largest mining companies.
It had earlier minimized some of its investments in America’s top banks. This includes America’s most valuable bank, JPMorgan Chase, and other leading financial brands like Wells Fargo & Co and eliminating a stake in Goldman Sachs Group Inc.
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