One of the richest men alive has seen his company suffer a whopping $US43.76 billion ($A63.3 billion) loss as a result of the bloodbath on the share market.
The billionaire Warren Buffett is one of the most successful investors of all time and has a net worth of $US102 billion ($A147 billion).
But there owner of Berkshire Hathaway was forced to reveal the brutal loss after its three biggest investments – shares in Apple, American Express and Bank of America – plummeted in the second quarter amid rising interest rates and runaway inflation.
But Mr Buffett isn’t a fan of relying on investments gains and losses, which can swing wildly from quarter to quarter.
Instead, he said the company’s operating earnings better reflect its performance.
Berkshire’s earning painted a far rosier picture skyrocketing to $US9.28 billion ($A14 billion), from last year’s $US6.69 billion ($A9.7 billion).
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Among the 90 companies operated under Berkshire, including insurance, utility, manufacturing and service companies as well as a railway firm, a $US487 million ($A703 million) loss was reported at insurance company Geico, due to the soaring value of cars and ongoing shortages of car parts.
Berkshire is believed to give an insight into how the broader US economy is faring given the broad scope of companies across industries, amid fears the US could be headed into a recession.
“This is a business that has its tentacles in all different parts of the economy. To show such broad revenue and earnings strength throughout the franchise, it gives me a lot of confidence that the broader economy is performing pretty well,” said Jim Shanaham, analyst at investment firm Edward Jones reported the Australian Financial Review.
The company revealed its revenue grew by more than 10 per cent to $US76.2 billion ($A110 billion) in the quarter as many of its businesses increased prices.
Earlier this year, the billionaire had to backflip on his staunch stance against cryptocurrency in an embarrassing concession.
The businessman was a well-known proponent against blockchains and compared bitcoin – the most popular cryptocurrency – to “rat poison” in 2018.
But in a filing with the US Securities and Exchange Commission (SEC) from Mr Buffettt’s company Berkshire revealed that he had spent a whopping US$1 billion (A$1.4 billion) on cryptocurrency.
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