Credit: USA International Trade Administration, Public domain, via Wikimedia Commons
The Berkshire Hathaway Inc’s (BRKa.N) run by billionaire Warren Buffett on Saturday reported a $43.8 billion loss.
The company however managed to generate nearly $9.3 billion of operating profit.
Rising interest rates and dividend payouts helped insurance businesses generate more money from investments, while the strengthening U.S. dollar boosted profit from European and Japanese debt investments.
Despite the huge net loss, “the results show Berkshire’s resilience,” said James Shanahan, an Edward Jones & Co analyst who rates Berkshire “neutral.”
“Businesses are performing well despite higher interest rates, inflation pressures and geopolitical concerns,” he said. “It gives me confidence in the company if there is a recession.”
Berkshire also slowed purchases of its stocks, including its own, though it still had $105.4 billion of cash it could deploy.
Investors closely watch Berkshire because of Buffett’s reputation, and because results from the Omaha, Nebraska-based conglomerate’s dozens of operating units often mirror broader economic trends.
Those units include steady earners such as its namesake energy company, several industrial companies, and familiar consumer brands such as Dairy Queen, Duracell, Fruit of the Loom, and See’s Candies.
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