"Stock God" also suffers huge losses.
On the evening of August 6, Beijing time, "Stock God" Berkshire Hathaway , a subsidiary of Buffett , announced its second quarter financial report for 2022, and 's investment portfolio lost as much as US$53 billion (approximately RMB 358.4 billion) . Throughout the second quarter, the net loss attributable to shareholders of was as high as US$43.755 billion, compared with a net profit of US$28.094 billion in the same period last year.
Berkshire Hathaway stock price trend
financial report shows that in the second quarter of this year, Berkshire Hathaway's stock holdings were concentrated in five companies: Apple (US$125.1 billion), Bank of America (US$32.2 billion), Coca-Cola (US$25.2 billion), Chevron (US$23.7 billion), and American Express (US$21 billion). The five companies holdings account for about 69%.
Among them, Apple, Bank of America, American Express and Chevron all encountered huge drawdowns in the second quarter, with a drop of 21.58%, 24%, 25.39%, and 10.35% respectively. Coca-Cola rose 2.22% against the trend in the second quarter.
Apple's stock price trend
In addition, since March this year, Buffett has continued to significantly increase his stake in Occupy Oil. As of the end of the second quarter, the company has acquired 17% of Occupy Oil's shares, worth US$9.3 billion.
Benefiting from the soaring international oil prices, Occupy Oil's performance is very impressive. Its second-quarter financial report showed that the company's total revenue reached US$10.735 billion, up 78.6% year-on-year; due to the low base of profit in the same period last year, the profit in the first half of this year soared 36 times year-on-year than . In the second quarter of this year, Oct. 2 rose by by 4%, and the largest increase in by by more than 30%. Since the beginning of this year, Oct. 2 has risen by 104%, with the largest increase of 157%.
October Petroleum’s stock price trend
However, as Berkshire Hathaway said in a statement: “The amount of investment profit and loss in any quarter is usually meaningless, and the net income per share data provided may be greatly misleading for investors who know little or no knowledge of accounting rules.” In the investment experience of "stock god" Buffett, there have been huge losses and many times being questioned, such as the China Petroleum and BYD he once invested in, but many times, the final results prove the unique vision of "stock god".
In the second quarter, Berkshire 's operating profit was US$9.28 billion, and increased by 38.7% year-on-year. This profit covers the Group's insurance, railway and utilities business, and does not include investment profit or loss.
The company bought new stocks in the second quarter to about $6.2 billion, significantly lower than $51.1 billion in the first quarter, and the company sold $2.3 billion in the second quarter.
As of the end of the second quarter, Berkshire's cash reserves were still as high as US$105.4 billion, compared with US$106.3 billion at the end of the last quarter.
Due to high inflation in the United States, the Federal Reserve has accelerated the pace of hikes rate . In June this year, the Federal Reserve raised a sharp 75 basis points, which is the largest single rate hike of the Federal Reserve since 1994. Rates mean a contraction of liquidity and constitute a negative impact on the stock market. In the second quarter of this year, the Dow Jones Index fell 11.25%, the S&P 500 Index fell 16.45%, and the Nasdaq Index plummeted 22.44%.
S&P 500 index trend
Nasdaq index trend
0 After June, the pace of the Federal Reserve's interest rate hike has not stopped, and continued to raise interest rates by 75 basis points in July. The strong non-farm employment data in the United States in July, which just released allows the Federal Reserve to focus its main energy on dealing with high inflation, and there are fewer concerns when hiking interest rates.
The latest data from the US labor market shows that non-farm employment increased by 528,000 in July, and the unemployment rate fell to 3.5%, significantly better than expected, and all returned to the pre-epidemic levels in February 2020.
Source: Qianjiang Evening News·Hours News Reporter Wang Yanping
Column Editor: Zhang Wu Text editor: Song Yanlin Title image source: Xinhua News Agency Photo editor: Cao Liyuan
Source: Author: Qianjiang Evening News
