what happened?The stock god Buffett loses 43.8 billion US dollars in the second quarter

On the morning of August 6, Eastern Time (on the evening of August 6, Beijing time), the stock god Buffett Berkshire Hathaway announced the second quarterly report. Due to a huge book loss due to the investment portfolio, the company belonged to the net loss of shareholders in the second quarter. As high as 43.755 billion US dollars, the net profit was 28.094 billion US dollars in the same period last year.

The financial report shows that the company's operating profit in the second quarter was US $ 9.283 billion, which was US $ 6.686 billion in the same period last year, an increase of 38.8%. However, the company's losses in investment and derivatives were as high as US $ 53.038 billion, of which the account book loss was as high as US $ 66.86 billion.

In the second quarter, the company's main business realized revenue of US $ 76.18 billion and the market expected $ 73.537 billion. The same period last year was US $ 69.114 billion, showing that its main business -insurance, railway and public utilities were still quite stable.

In the first half of the year, Berkshire had a cumulative net loss of US $ 38.295 billion, and the same period last year was $ 39.805 billion in profit.

Do not over -tangle short -term gains and losses

The report pointed out that, given the huge scale of the company's equity securities investment portfolio, market fluctuations and changes in stocks have not achieved profit or loss, it will have a significant impact on the company's performance. In addition, some foreign currency denominations of assets and liabilities, as well as asset impairment costs, etc. can cause periodic net profit fluctuations.

The U.S. Financial Accounting Standard (FASB) has modified the recognition of accounting principles (GAAP) and requires listed companies to consider short -term fluctuations in their stock investment in the quarterly and annual reports. This means that the price fluctuation of the stock invested by Berkshire Hathaway will be reflected in the company's performance report, even if it is only unrealized book income or book loss.

Therefore, Berkshire still reminds that investors should not pay too much attention to the fluctuation of investment income in the company's financial report.

The financial report pointed out that "investment profit or loss in any quarter is usually meaningless. The net income data provided by it may have a great misleading of those investors who have little or unknown accounting rules or unknown."

In the second quarter, Berkshire lost $ 29,754 per share of Actor A shares per share, and a loss of $ 19.84 per share of categories B. In contrast, the same period last year, a category A ordinary share profit was $ 18,488, and the profit of category B was $ 12.33 per share.

In order to curb high inflation, the Federal Reserve has been raising interest rates many times this year, and the economic recession is concerned about heating up. In the second quarter, the US stock market fell into a bear market. In the season, the Standard 500 Index fell more than 16%, the largest quarterly decline since March 2020. In the first half of this year, the broader market fell 20.6%, the largest in the first half of the year since 1970.

Five major heavy positions

In the second quarter of this year, about 69%of Berkshire Hathaway's stocks were concentrated in five companies: American Express (US $ 21 billion), Apple ($ 125.1 billion), Bank of America (US $ 32.2 billion), Coca -Cola Company ( $ 25.2 billion) and Chevron ($ 23.7 billion), the list of heavy warehouses was consistent with the previous quarter.

The three major heavy stocks of Apple, Bank of America and American Express fell more than 20 % in the second quarter.

It is worth mentioning that Berkshire has greatly increased western oil since the year. According to the financial report, as of the end of June, the company has acquired 17%of the stocks that account for 17%of Western oil, worth $ 9.3 billion, which is also a rare investment in Berkshire in recent years.

In July, Berkshire continued to increase its holdings of Western oil, holding a shareholding of 19.4%, and only one step away from the "parallel" of finance.

Western Petroleum Corporation is the best performance in the Standard S & P 500 index this year. Due to the soaring oil prices, its stock price has doubled more than doubled.

Slow repurchase speed

In the second quarter of this year, Berkshire still promoted stock repurchase as always, but the repurchase momentum slowed down. The quarterly report shows that Berkshire spent about 1 billion US dollars in the second quarter for purchasing ordinary shares of the company with a repurchase of US $ 3.2 billion in the first quarter.

As of June 30, 2022, Berkshire Hathaway had a total of 14,75077 category A shares and 2,205,865,262 type B stocks.

The quarterly report shows that in the second quarter, Berkshire's cash reserves fell slightly to $ 105.4 billion, at the end of the last quarter of which were $ 106.3 billion.

understand more

- END -