Buffett Also Hit by COVID-19... First Quarter Reports Losses

[Image source=Reuters Yonhap News]

[Asia Economy International Desk Reporter] Even 'investment genius' Warren Buffett suffered investment losses due to the direct impact of the novel coronavirus infection (COVID-19).

According to the Wall Street Journal (WSJ) on the 2nd (local time), Berkshire Hathaway, the investment company led by Chairman Buffett, recorded a net loss of $49.7 billion (approximately 60.5843 trillion KRW) in the first quarter of this year. Berkshire Hathaway posted a net profit of $21.66 billion in the first quarter of last year but turned to a loss this year.

Berkshire Hathaway's net loss stemmed from an investment valuation loss of $54.52 billion. Stock investments accounted for a significant portion of the valuation loss. As the stock market faced a selling spree due to COVID-19, the stocks Berkshire Hathaway invested in could not avoid a sharp decline.

Operating profit excluding the investment sector in the first quarter was recorded at $5.87 billion, up from $5.56 billion in the same period last year. Although Chairman Buffett recorded a net loss in the first quarter, he emphasized that operating profit should be considered when discussing Berkshire Hathaway's performance.

However, the ongoing COVID-19 situation poses a crisis for the entire company. The company stated, "Measures to block COVID-19 have continued until April, negatively affecting most businesses," and added, "In the second quarter, almost all sectors may be adversely affected."

Berkshire Hathaway holds $137 billion in cash as of the end of the first quarter, unable to find suitable investment destinations. This is the largest amount in history.

This content was produced with the assistance of AI translation services.