Read? Losing Is Part Of The Game. Don't Give Up Yet!
Read? Warren Buffett’s Berkshire posts record net loss of nearly $50 billion on coronavirus
Warren Buffett’s Berkshire Hathaway posted a higher operating profit on Saturday, but the coronavirus pandemic pummeled its common stock investments and led to a record net loss.
Berkshire’s first-quarter net loss totaled $49.75 billion, or $30,653 per Class A share,
reflecting $54.52 billion of losses from investments, mainly common stocks. A year earlier, net earnings totaled $21.66 billion, or $13,209 per share.
Quarterly operating profit, which Buffett considers a better performance measure, rose 6% to $5.87 billion from $5.56 billion.
An accounting rule requires Berkshire to report unrealized stock losses and gains with earnings. This causes huge swings in Berkshire’s net results that Buffett considers meaningless.
CW8888:
Even Warren Buffer can lose money in the stock market.
Should be learning from Warren Buffet on unrealized losses and focus on operating cash flow (investment income) from our investment portfolio? LOL!
Posts
(Reuters) - Billionaire investor Carl Icahn, who was the largest shareholder in Hertz Global Holdings Inc, unloaded his entire stake in the rental car company at a "significant loss" days after it filed for bankruptcy protection.
ReplyDeleteAccording to a regulatory filing https://bit.ly/3enMoJw made on Wednesday, Icahn, who held a nearly 39% stake in Hertz and had three representatives on the board, sold 55.34 million shares on Tuesday at 72 cents per share.
Hertz fell victim to coronavirus shutdowns that dramatically curtailed travel and created major financial hardships for the company, Icahn said in the filing, adding that he supported the board's decision to seek bankruptcy protection on Friday.
Even though he suffered heavy losses, which he did not quantify, Icahn said that he still believed in the company and thinks it can be a "great company" in the future. At the end of 2019, his stake in Hertz was worth close to $700 million.
"I intend to closely follow the Company’s reorganization and I look forward to assessing different opportunities to support Hertz in the future," he said in the filing. He could not be reached for comment on Wednesday evening.
Rumors had circulated for weeks about how Icahn might react as Hertz' troubles mounted and the company replaced its chief executive officer, laid off 10,000 people and warned that there was considerable doubt about its ability to continue operations. The company operates Hertz, Dollar and Thrifty car-rentals.
Icahn declined to comment because his representatives -- Vincent Intrieri, Daniel Ninivaggi and SungHwan Cho -- sit on the board.
Icahn obtained his shares in 2016 when the company was separated from Herc Holdings, where he also had representatives on the board.
Icahn, whose net worth is said to be $14.3 billion, had been fond of saying that investors should buy a stock when his representatives get on the board and not sell until they leave, promising that good things inevitably happen when he becomes involved.
Corporate Raider and big Croc!
ReplyDelete