InvestorQ : How did Berkshire Hathaway report such a huge loss in the second quarter of the year ended June 2022?
swati Bakhda made post

How did Berkshire Hathaway report such a huge loss in the second quarter of the year ended June 2022?

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Sam Eswaran answered.
2 months ago
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For the second quarter ended June 2022, Berkshire Hathaway (the investment vehicle of Warren Buffett) reported a net loss of $43 billion. However, that was largely on account of a $53 billion write off on investment value during the quarter. As a matter of prudence, Berkshire Hathaway writes off the entire amount of MTM losses to its profit and loss account each quarter and markets the portofolio to market. This ensures that, at any point of time, the P&L reflects the most updated scenario also in the company accounts.

During the quarter, Berkshire also reported a net income of $9.8 billion on its insurance and railroad business, which reduced the impact of the loss from $53 billion to $43 billion for the quarter. Having said that, Berkshire Hathaway has been extremely aggressive in buying the dip with purchases of $3.8 billion in equities. One of the key stocks that Buffett added on to his portfolio further was Occidental Petroleum However, Buffett reduced the stock buyback to just $1 billion in June quarter compared to $7 billion median in previous quarters.

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