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.
Explore Data on the Nairametrics Research Website
Bears take Nigerian stocks hostage, investors lose N82.4 billion
Investor sentiment as measured by the market breadth closed negative with 12 advancers and 47 decliners.
Nigeria’s all-share index fell further at the close of trading today, down by -0.40% to 39,364.67 points. Investors losses today stood at N82.35 billion.
- Year-to-date return and market capitalization settled at -2.26% and N20.5 trillion, respectively.
- Investor sentiment as measured by the market breadth closed negative with 12 advancers and 47 decliners.
- Across coverage sectors, the performance was bearish. The NSE insurance, banking, consumer goods, and oil & gas sectors dipped 4.04%, 1.54%, 1.47%, 64 basis points, and 0.65%, respectively.
- The flip side saw only the industrials improved marginally by 0.19%.
- UPL up 9.91% to close at N1.22
- MORISON up 9.09% to close at N0.6
- CAP up 5.26% to close at N20
- WAPCO up 3.59% to close at N20.2
- LIVESTOCK up 3.17% to close at N2.28
- FIDSON down 10.00% to close at N4.41
- NNFM down 9.97% to close at N6.32
- ENAMELWA down 9.95% to close at N19.9
- NEM down 9.95% to close at N1.72
- NCR down 9.91% to close at N3.09
Nigerian stocks ended the fourth trading session on a weaker note amid soaring oil prices prevailing at the U.S trading session.
- Today’s bearish trading session was inclined by sell pressure on consumer ticker, DANGSUGAR which lost -6.25%. JBERGER, ARDOVA, and UBA also declined by -7.88%, 9.85%, and -3.64%, respectively.
- Nairametrics expects intending buyers to seek the advice of certified stockbrokers.
Nigerian stocks plunge, as WEMA, CHAMPION, MANSARD slump
The market breadth closed negative as LASACO led 17 Gainers as against 23 Losers topped by CHAMPION at the end of today’s session.
Nigerian stocks wrapped up the week on a bearish note after the benchmark index registered its third negative close in the last five sessions.
- Sentiments notably picked up where they left off yesterday, as selloffs persisted in bellwether ticker – ZENITHBANK (-1.55%) as well as in Telco giant – MTN Nigeria (-3.28%).
- The 74 basis points pullback recorded today kept the All Share Index return firmly rooted in the red and also lowering the Year date returns to -1.88%.
- Save for the Oil and Gas (+0.25%) index lifted by sustained interest in OANDO (+2.99%), all other sectors closed in the negative territory.
- The Insurance (-2.32%), Banking (-0.48%), Consumer Goods (-0.40%), and Industrial Goods (-0.19) indices declined following price dips in MANSARD (-5.36%), ZENITHBANK (-1.55%), INTBREW (-3.65%), and WAPCO (-2.94%) respectively.
- The market breadth closed negative as LASACO led 17 Gainers as against 23 Losers topped by CHAMPION at the end of today’s session
- LASACO down 9.82% to close at N1.23
- MBENEFIT down 8.11% to close at N0.37
- COURTVILLE down 5.00% to close at N0.21
- OANDO down 2.99% to close at N3.45
- NAHCO down 2.70% to close at N2.28
- WEMABANK down 10.00% to close at N0.63
- CHAMPION down 10.00% to close at N2.52
- SUNUASSUR down 9.59% to close at N0.66
- AFRIPRUD down 5.74% to close at N5.75
- MANSARD down 5.36% to close at N1.06
Nigerian stocks ended the last trading session of the week on a bearish note amid profit-taking across the market spectrum.
- Downtrend was driven by price depreciation medium capitalized stocks amongst which are; WEMA, CHAMPION, MANSARD.
- That being said, Nairametrics envisages cautious buying on the account that certain market indicators reveal investors are taking some of their gains across the market spectrum.
Nairametrics | Company Earnings
- 2020 FY Results: Nigerian Breweries reports a 54.3% decline in profits in 2020
Nigerian Breweries Plc released its […]
- Abbey Mortgage Bank projects N51.08 million profit in Q2 2020.
Abbey Mortgage Bank has released its […]
- Dangote Sugar increases post tax profit by 33%, as earnings per share prints at N2.45
Dangote Sugar released its full-year […]
- FY 2020: Ardova Plc posts N1.86 billion Profit After Tax
Ardova Plc (formerly Forte Oil Plc) […]
- FY 2020: Africa Prudential posts N1.45 billion Profit After Tax.
Africa Prudential Plc released its […]