Saturday, October 16, 2021

Warren Buffett’s Berkshire reports first-quarter profit of $ 7 billion

Berkshire Hathaway’s first-quarter profit rose 20%, recording $ 7.02 billion (about $ 4,600 per Class A share), compared to $ 5.87 billion in the first quarter of 2020.

Stock buybacks
The affiliate of billionaire Warren Buffett confirmed, Saturday, that its results are recovering from the repercussions of Covid-19, indicating that it has expanded its share buybacks through new buybacks of $ 6.6 billion, while Berkshire has repurchased $ 24.7 billion of its shares in last year.

From March 31 to April 22, Berkshire also bought more than $ 1.2 billion in shares that had previously sold.

The company’s net income was $ 11.71 billion during the first quarter of this year, or $ 7,638 per Class A share, compared to a net loss of $ 49.75 billion, or $ 30,653 per share, in the same period in 2020.

Warren Buffett, CEO of Berkshire Hathaway, speaks to the press as he arrives at the 2019 annual shareholders meeting in Omaha, Nebraska, May 4, 2019. (Photo by Johannes EISELE / AFP) (Photo credit should read JOHANNES EISELE/AFP via Getty Images)

It is noteworthy that the Berkshire Accounting Rules “require reporting gains and losses on shares that you own, even if you do not make buying and selling operations.”
Profit before taxes from retailers such as Nebraska Furniture Mart and See’s Candies doubled, as Berkshire car dealerships sold more cars and some results surpassed pre-pandemic levels despite supply chain disruptions.
Berkshire explained that Precision’s quarterly revenue has decreased by 36%, estimating that revenue and profits will remain “relatively low” in 2021 because it is “unlikely that aircraft production will grow significantly”.
Class A shares of Berkshire closed at $ 412,500, Friday, after hitting their highest level the day before trading.
Forbes estimates the wealth of the American billionaire, Warren Buffett, at $ 103.7 billion, as of May 1, 2021, and he is ranked sixth in the world in the list of the richest billionaires.

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