Warren Buffet’s Berkshire Hathaway Group incurred a net loss of nearly $50 billion as the coronavirus pandemic dealt a major blow to its common stock investments, Reuters reported.
Berkshire reported a first-quarter net loss of $49.75 billion, or $30,653 per Class A share, which reflected $54.52 billion of losses from investments, mainly common stocks, according to Reuters.
That’s down from a profit of $21.66 billion during the same period last year, or $13,209 per Class A share.
However, quarterly operating profit surged 6 percent to $5.87 billion.
Berkshire said revenue slowed considerably in April as the pandemic negatively affected most of its businesses. The company closed several of its retail businesses, including See’s Candy and the Nebraska Furniture Mart. However, this spring, Berkshire’s BNSF railroad along with its insurance and utility businesses continued operating while adjusting to lower demand.
The U.S. billionaire said he hasn’t made any big deals during the coronavirus crisis because he hasn’t seen any on attractive terms.
He added that many companies have been able to borrow money in the market in the past two months because the U.S. Federal Reserve stepped in to keep markets moving, so they haven’t resort to Berkshire for help.
