NewsExpress advert FCMB banner Fidelity bank banner NewsExpress advert
Warren Buffet loses billions, first in 9 years

By News Express on 08/05/2018

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 523

•Warren Buffett
•Warren Buffett

Warren Buffett has reported a $1.14 billion loss at Buffett’s Berkshire Hathaway Inc. in the first quarter, the Omaha, Nebraska-based company said.

That marked the company’s first net loss since 2009.

The loss was caused by new accounting-rule changes, which the Oracle of Omaha had predicted would cause nightmares. The rules require Berkshire to report unrealised gains or losses in equity investments in net income.

The “requirement will produce some truly wild and capricious swings in our GAAP bottom line,” Buffett warned in his annual letter to shareholders released in February. The accounting change “will severely distort Berkshire’s net income figures and very often mislead commentators and investors.”

Buffett has said operating results are a better barometer of company performance, in part because Berkshire’s more than $170 billion stock portfolio can fluctuate from quarter to quarter.

Operating profit, which doesn’t include those changes, jumped 49 percent to $5.29 billion during the first quarter as insurance underwriting swung to a profit after a difficult 2017.

A 16 percent jump in revenue at auto insurer Geico helped the company turn an underwriting profit, according to a regulatory filing. Geico was helped by rate increases that pushed premiums higher. The railroad business also posted a gain in profit due to increased revenues per car as fuel prices rose.

Berkshire’s cash pile fell to $109 billion at the end of March from the record $116 billion at year-end, the first decline in two years.

Buffett has said that deploying that cash into new, large acquisitions is key to increasing earnings over time. The first quarter’s drop was driven in part by spending more than $12 billion on more Apple Inc. shares.

The company reported the value of Apple its stake at $40.7 billion as of March 31, a jump from $28.2 billion at the end of 2017. Buffett said in a CNBC interview that aired Friday that his company bought an additional 75 million shares of the technology company in the first quarter.

Berkshire said the fair value of its investment in Kraft Heinz Co. dropped by more than $5 billion to $20.3 billion in the quarter, as shares slipped almost 20 percent.

Berkshire shareholders gathered in Omaha for the company’s annual meeting Saturday, where Buffett and his business partner Charles Munger discussed everything from the economy to investing tips and even the pair’s wagers on certain companies. (Bloomberg/NAN)

 

Source News Express

Posted 08/05/2018 12:46:14 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
Army explains raid on ex-militant leader’s home

Military denies Boko Haram resurgence in Northeast

Uduaghan indicts international community over oil theft

DELTA MAKES HISTORY, launches climate change policy, plan...

Man drowns in Enugu well

Segun Awolowo gets another 4 years as NEPC...

DPR launches investigation into Nnewi Gas Plant explosion...

Music star Burna Boy charged to court for...

Buhari resumes, meets with AGF, NNPC GMD

Buhari not making full board appointments January: Presidency...

Kaduna Govt. boosts learning in public schools with...

NAF tactical Air Command launches medical assistance programme...

 

Latest News What we discussed with Security Chiefs — Saraki Buhari vs Obasanjo: Group seeks investigation of all past Nigerian leaders, punishment for all found guilty Police set to prosecute 47 MASSOB/BIM members arrested in Abia $16bn Power Projects: CNPP canvasses open probe of Obasanjo Administration Military cries out over alleged smear plot by Amnesty International Bayelsa Govt., APC trade blames over violence, death of 5 during Niger Delta University protest FAAC: FG, states, LGs share N701bn EFCC set to arraign Edo PDP chiefs over alleged money laundering Transmission Speech: Rights group queries IGP Ibrahim Idris’ certificate Kogi commences payment of bursary allowance to students N450m Campaign Fund: Court adjourns Belgore, Suleman case to June 25 Korea announces $5bn financial package for Africa

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (345,500 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (342,257 views) Shameless Genevieve Nnaji exposes breasts in public (273,576 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (224,919 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (205,306 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (202,984 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (177,082 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (159,379 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (150,293 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (143,595 views) Lagos plane crash: Journalist releases victims’ names (140,112 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (132,527 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (41) Business & Economy (3,155) Business Verdict (43) Columnists (854) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (497) Features (598) Global Business Monitor (274) International (1,969) Interview (149) Live Commentary (28) Love Matters (120) News (35,550) Opinion (963) Pidgin (10) Politics (5,056) Religion (745) Sports (1,517) Stock Watch (29) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Boko Haram commanders surrender

 

APO Group Partner

 

 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement