If you’re standing in the ring, facing down the might fists of inflation, recession, supply chain constraints, a pandemic, and a European war, who do you want in your corner?
The guy who’s been through it all before, of course…
Warren Buffett and Berkshire’s steady hand!
Up almost 6% year-to-date, Berkshire Hathaway’s conglomerate juggernaut is faring better than most in these troubled times.
However, even Warren Buffett’s diversified portfolio wasn’t immune to contemporary realities as Berkshire delivered net earnings of $5.46 billion, down from $11.71 billion in the prior year, representing a drop of about 53%. This included reported investment and derivative contract losses of $1.58 billion in Q1 compared to a gain of $4.69 billion in the prior year thanks to market volatility.
Did anyone panic though? Perhaps this quote from the company on Saturday will provide an answer:
“The amount of investment gains (losses) in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules.”
And, after complaining for years that high valuations were thwarting his stock-buying efforts, Buffett is back hoovering up other companies’ shares. The conglomerate made roughly $41 billion worth of investments, the most significant including a large stake in car manufacture, Chevron, Microsoft-acquired AAA game developer, Activision Blizzard, and a $600 million top-up in Apple shares.
So, through all the trials and tribulations of the past two years, Buffett & Co. are sticking to their guns with the buy-and-hold strategy and getting deflated stocks at discount prices.
And that’s exactly how we like it here at MyWallSt.
Content Manager at MyWallSt
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.