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Berkshire Hathaway Chairman Warren Buffett walks through the exhibit hall as shareholders gather to hear from the billionaire investor at Berkshire Hathaway Inc’s annual shareholder meeting in Omaha, Nebraska, U.S., May 4, 2019. REUTERS/Scott Morgan//File Photo

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Aug 6 (Reuters) – The slide in U.S. stock prices punished Berkshire Hathaway Inc’s (BRKa.N) bottom line in the second quarter as the company run by billionaire Warren Buffett posted a $43.8 billion loss.

Berkshire nevertheless generated nearly $9.3 billion of profit from its operating businesses, as improvement from reinsurance and the BNSF railroad offset a loss at the Geico car insurer, where car parts shortages and higher vehicle prices boosted losses from accidents.

Rising interest rates and dividend payouts helped Berkshire’s insurance units generate more money from investments, while the strengthening U.S. dollar boosted profit from the company’s European and Japanese debt investments.

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Berkshire also slowed purchases of its stocks, including its own, though it ended June with $105.4 billion of cash and equivalents it could still deploy.

“It shows the fickle nature of markets,” said Tom Russo, a partner at Gardner, Russo & Quinn in Lancaster, Pennsylvania, who invests more than $8 billion, of which 17% is in Berkshire. “It’s business as usual at Berkshire Hathaway.”

Investors closely watch Berkshire because of Buffett’s reputation, and because results from the Omaha, Nebraska-based conglomerate’s dozens of …….

Source: https://www.reuters.com/markets/europe/berkshire-hathaway-posts-huge-quarterly-loss-operating-results-improve-2022-08-06/

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