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Warren Buffett Still Believes In Himself. Everyone Else Is An Open Question.

Disciples of Omaha's most famous granddad will be pleased to know that during the second quarter, Warren Buffett managed to avoid the kind of Nebraska-sized paper loss logged during the first three months of 2020, when Berkshire Hathaway's net income plunged almost $50 billion. That mind-boggling drop was, of course, attributable to losses in Berkshire's colossal stock portfolio, which suffered mightily as equities abruptly tumbled into a bear market amid the pandemic panic. In Q2, net income soared 87% to $26.3 billion alongside the recovery in stocks. That's the good news. The less-good news is that second quarter results show Berkshire reporting a 10% drop in operating income (to $5.51 billion from $6.14 billion), Buffett's preferred measure of performance. "Our operating business groups are preparing for reduced cash flows from reduced revenues and economic activity as a result of COVID-19", Berkshire's Saturday filing reads. "We are taking measures to reduce costs as appropriate [and] currently believe our liquidity and capital strength, which is extremely strong, to be more than adequate". Buffett's cash hoard surged more than $9 billion for the second straight quarter
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1 comment on “Warren Buffett Still Believes In Himself. Everyone Else Is An Open Question.

  1. Prestwick AK says:

    Just imagine what Warren’s 2Q20 could have looked like, had J-Pow not “robbed him” of the opportunity to bottom feed in the wake of the pandemic.

    Poor old guy…

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