After US stocks fell negatively on Berkshire Hathaway Corporation In the second quarter of the year, the giant company run by billionaire Warren Buffett announced today, Saturday, that it incurred a loss of $ 43.8 billion.
But despite this, the company achieved operating profit of $9.3 billion, as reinsurance gains and revenues from BNSF Railways outweighed losses in the Geco car insurance unit, following an increase in insurance policies due to a shortage of spare parts and an increase in Used car prices.
The increase in interest rates and dividends contributed to insurance companies achieving more gains from investments, while the rise of the US dollar boosted profits from investments in European and Japanese debt instruments.
James Shanahan, an analyst at Edward Jones & Co., which gave Berkshire a “neutral” rating, said that despite the huge net loss, the results reflected the firm’s solid position.
“The company is doing well despite interest rate hikes, inflation pressures and geopolitical concerns. This gives me confidence in the company if there is a recession,” he added.
The company has also slowed stock sales, and it still has $105.4 billion of cash to tap.