Free Trial

Buffett's firm reports $44B loss as portfolio value falls

Warren Buffett
Warren Buffett, chairman and CEO of Berkshire Hathaway, smiles as he plays bridge following the annual Berkshire Hathaway shareholders meeting in Omaha, Neb., on May 5, 2019. Buffett’s company reported a nearly $44 billion loss in the second quarter Saturday, Aug. 6, 2022, as the paper value of its investments plummeted and he bought significantly fewer stocks, but Berkshire Hathaway’s many operating companies generally performed well. (AP Photo/Nati Harnik, File)

OMAHA, Neb. (AP) — Warren Buffett's company reported a $43.76 billion loss in the second quarter as the paper value of its investments plummeted and he bought significantly fewer stocks, but Berkshire Hathaway's many operating companies generally performed well.

Berkshire said Saturday that a largely unrealized $53 billion decline in the value of its investments forced it to report a loss of nearly $44 billion, or $29,754 per Class A share. That is down from $28.1 billion, or $18,488 per Class A share, a year ago.

The stock prices of three of Berkshire's biggest investments — Apple, American Express and Bank of America — all fell significantly during the second quarter.

Buffett has long said he believes Berkshire’s operating earnings are a better measure of the company’s performance because they exclude investment gains and losses, which can vary widely quarter to quarter. By that measure, Berkshire’s earnings were up significantly to $9.28 billion, or $6,312.49 per Class A share from last year’s $6.69 billion, or $4,399.92 per Class A share.

The four analysts surveyed by FactSet expected Berkshire to report operating earnings per Class A share of $4,741.64.

Besides investments, Berkshire owns more than 90 companies outright. Berkshire said operating profits were up at all of its major units including its insurance companies, major utilities and BNSF railroad. The strong results at most of its companies offset a $487 million underwriting loss at Geico, which reported bigger auto claims losses because of the soaring value of vehicles and ongoing shortages of car parts.

Berkshire said it was sitting on $105.4 billion cash at the end of the quarter, which was little changed from the $106 billion it reported at the end of the first quarter. That signaled that Buffett wasn't buying nearly as many stocks during the second quarter although it has reported investing several billion in Occidental Petroleum stock. In the first three months of the year Berkshire spent more than $51 billion on stocks.

Berkshire did spend $1 billion buying back its own shares in the quarter, but the pace of those buybacks has slowed significantly. Berkshire repurchased $3.2 billion of its shares in the first quarter and $27 billion last year. Before this year's buying spree of stocks such as oil producers Occidental and Chevron, and printer maker HP Inc., repurchases had been Buffett's biggest investment in recent years as he struggled to find major acquisitions.

Berkshire's acquisition drought also ended earlier this year when he signed an $11.6 billion deal to acquire the insurance conglomerate Alleghany later this year.

Should You Invest $1,000 in Berkshire Hathaway Right Now?

Before you consider Berkshire Hathaway, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Berkshire Hathaway wasn't on the list.

While Berkshire Hathaway currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The 10 Best AI Stocks to Own in 2025 Cover

Wondering where to start (or end) with AI stocks? These 10 simple stocks can help investors build long-term wealth as artificial intelligence continues to grow into the future.

Get This Free Report
Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRankâ„¢Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Berkshire Hathaway (BRK.A)
0.4961 of 5 stars
$716,239.280.0%N/A12.72N/AN/A
Compare These Stocks  Add These Stocks to My Watchlist 

Featured Articles and Offers

Recent Videos

3 Made in America Stocks Under $20 You Need to See!
3 Cheap Growth Stocks Set to Explode This Summer
The Next NVIDIA? Quantum Computing Stocks Set for Explosive Growth

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines