Berskhire Hathaway, the veteran investor’s conglomerate Warren Buffettearned 58,649 million dollars in the first nine months of its fiscal year and amassed record liquidity of 157,000 million, although it had losses in the most recent quarter.
The American company published its quarterly results this Saturday and disclosed that in the third quarter it had a loss of 12,767 million, about four times higher than that of the same section of 2022, which is explained by the poor performance of its investments in recent months due to the ups and downs of the market.
In that period, the investments of Berkshire Hathaway they lost about 23,000 million dollars – their biggest bet is Manzanawhich fell 12% in the stock market – while operating profits were almost 11,000 million, which gave rise to that negative figure.
The media indicated that the company’s liquidity has risen to a record of 157,000 million dollars, exceeding the historical amount registered two years ago, of which the majority is housed in bonds of the American treasure.
In fact, the firm indicated that in the third quarter its interest income grew by 1.3 billion, “mainly due to increases in short-term interest rates.”
”We continue to have substantial balances of cash, cash equivalents, Treasury bills and other investments with relatively short maturities. “We continue to believe that having ample liquidity is key and we insist on safety over performance with respect to short-term investors.”says the statement.
The accounts of the firm of Buffett They have been especially volatile since 2018 due to an accounting standard that came into force then and that requires including the change in the value of shares in their possession, which given their enormous portfolio causes large movements depending on the direction of the markets.
The statement repeats, in that sense, a common warning: “The amount of investment gains/losses in a given quarter is often meaningless and provides net earnings (losses) per share figures that can be very misleading to investors with little or no knowledge of accounting standards.”.
(With information from EFE)
Source: Gestion
Ricardo is a renowned author and journalist, known for his exceptional writing on top-news stories. He currently works as a writer at the 247 News Agency, where he is known for his ability to deliver breaking news and insightful analysis on the most pressing issues of the day.
