Berkshire Hathaway Lost $50 Billion Last Quarter As Warren Buffett’s Investments Took A Hit From Coronavirus

TOPLINE

Billionaire Warren Buffett’s famed investing conglomerate, Berkshire Hathaway, reported a massive net loss of nearly $50 billion in the first quarter, as the coronavirus-driven market sell-off took a significant toll on the company’s stock holdings.

KEY FACTS

Key background

Buffett emerged as a key player who helped restore confidence in the markets during the 2008 financial crisis, but he’s remained relatively quiet during the 2020 coronavirus downturn. Charlie Munger, vice chairman at Berkshire Hathaway
BRK.B
, told the Wall Street Journal recently that the Oracle of Omaha is being “fairly conservative” with his investments in the current market. He also admitted that a few of Berkshire’s smaller businesses might altogether. Companies are reportedly not calling Berkshire for capital like they were in 2008: “The phone is not ringing off the hook,” Munger confirmed, adding that airlines are “all negotiating with the government, but they’re not calling Warren.”

Crucial statistic

Berkshire Hathaway’s stock is down 20% so far this year, compared to a 13% decline for the S&P 500.

Tangent

Warren Buffett is the world’s fourth-richest person, with a net worth of $72 billion, according to Forbes’ estimates.

What to watch for

Berkshire’s first-ever online annual shareholders meeting will take place later today, at 4:45 p.m. ET.

Further reading

What Is Warren Buffett Up To? Berkshire Swooped In During 2008, But What’s Its Power Play For 2020? (Forbes)

Here’s What Warren Buffett Says About The Coronavirus And His Outlook On Stocks (Forbes)

Here’s Why One Of Warren Buffett’s Favorite Stocks Might Be Poised For A Rebound (Forbes)

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