Warren Buffett’s Berkshire Hathaway reported a substantial loss of nearly $13 billion in the third quarter of the year.
The company disclosed that it lost $12.8 billion, equivalent to $8,824 per Class A share, for the quarter, according to Associated Press (AP). This loss is significantly larger than the $2.8 billion loss, or $1,907 per Class A share, that Berkshire Hathaway reported for the same period last year.
The majority of these losses are unrealized, as Berkshire Hathaway did not sell most of its stocks, with its largest holding being a significant stake in Apple. Accounting rules mandate that the company include the value of its investments in its earnings. At the end of the quarter, Berkshire Hathaway valued its investments at $341.1 billion, a decrease from the previous quarter when it reported a value of $353 billion, the outlet added.
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Buffett has long emphasized that investors should focus on Berkshire Hathaway’s operating earnings, which exclude the varying value of its investments from quarter to quarter. Berkshire reported that its operating profit surged by nearly 41% to $10.8 billion, or $7,437.15 per Class A share, up from $7.65 billion, or $5,215.60 per Class A share, in the same quarter the previous year.
The company’s overall portfolio spans various industries, including insurance, transportation (BNSF railroad), utilities, and manufacturing and retail firms. The company continues to maintain a significant cash position, with $157.2 billion in cash on hand at the end of the third quarter, up from $147.4 billion at the end of the second quarter, AP further reported.
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