Market Slump Hits Earnings At Berkshire Hathaway

Hard-hit by the market rout surrounding the coronavirus pandemic, Berkshire Hathaway, the holding company of Warren Buffett, has reported first-quarter net losses of nearly US$50 billion, it reported on Saturday.

The celebrated billionaire, considered one of the world's savviest investors, said a better measure of the company's performance was its operating earnings, which exclude investments and are less subject to sharp fluctuations.

By that measure, Berkshire Hathaway saw growth to US$5.9 billion from US$5.55 billion a year earlier.

The brutal drop in the net -- to a loss of US$49.75 billion from a profit last year of US$21.7 billion -- resulted primarily from the drop in value of its wide-ranging portfolio of investments amid fears over the economic impact of the global pandemic.

A year earlier, the conglomerate reported profits of US$15.5 billion.

Buffett had predicted that a 2018 accounting rule would create "wild and capricious swings" in the company's reported profits or losses. (AFP)