The corona virus epidemic has also hit the portfolio of veteran investors. Corona has hurt Warren Buffett, the world’s largest investor. His company Berkshire Hathaway presented the September quarter results on Saturday. It has shown that the company has suffered a lot at the working level.
Even a strong boom in the stock like Apple could not save Buffett’s company from loss. Many businesses in Berkshire have made a good return from lower levels, but the company’s revenue has fallen by 3 per cent.
Covid-19 and low interest rates have significantly affected the profits of the insurance business. The business of Gecko (Auto Insurance Company) and Precision KartSpart (Airlines Part Company) collapsed. Also, the employment of millions of people was also lost.
The buybacks received $ 16 billion during January to September, up from $ 2.3 billion in October. The number of Berkshires shares declined. Many analysts believe the market is buoyed by buybacks, but Berkshire is keeping the money at a difficult time.
The company’s operating profit fell 32 percent to $ 5.48 billion in the September quarter, from $ 8.07 billion a year earlier. The company’s net income grew 82 percent to $ 30.1 billion from $ 16.5 billion, with total revenue of $ 63 billion.
Use of cash
Berkshire benefited from $ 24.8 billion in investments in Apple, which climbed 27 percent. The company has invested $ 111.7 billion in Apple, which is 46 percent of its portfolio. However, the company also partially booked profits in Apple.
Results on a net basis are volatile as Berkshire has not recovered losses or profits in many companies. The company had a loss of $ 26.3 billion in the second quarter. But it incurred a loss of $ 50 billion in the first quarter. Despite the buyback, the company has cash of $ 145.7 billion.
The Nebraska-based company invested $ 6 billion in five Japanese companies. It has also bought a stake in data storage company Snowflake. Many analysts believe that there is such a huge amount of cash after the buffet that they can take advantage of the decline.
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