Warren Buffett loses billions due to fall in Apple share price
The slump in Apple's share price has driven star investor Warren Buffett's conglomerate deep into the red. At 12.77 billion dollars, the net loss in the third quarter was four times as high as a year earlier, as the Berkshire Hathaway Group announced.
The fact that the Apple share price fell by twelve percent and other share packages held by Berkshire Hathaway also lost value resulted in book losses of 23.5 billion dollars for the group. Due to such valuation effects, the net result of the 93-year-old investor's group of companies often fluctuates greatly. The fact that the book losses did not have a full impact was due to the profitable business of the Group's own companies.
Because the car insurer Geico, for example, had to pay for fewer accidents and the reinsurance business benefited from a hurricane season with comparatively few claims, Berkshire Hathaway's operating profit climbed by 41 percent to 10.76 billion dollars.
Buffett always advises investors to focus on the results of his company's operating business. According to Forbes magazine, the 92-year-old investor is the sixth richest person in the world with a fortune of more than 117 billion dollars. He and Berkshire Hathaway are particularly highly regarded because of his investment decisions and the broad positioning of his group in many sectors.
Jazwares, the toy manufacturer acquired by Berkshire Hathaway last year and known for its Squishmallows plush toys, also reported good business. By contrast, profits at freight railroad BNSF shrank due to declining demand for the transportation of consumer goods.
Warren Buffett, known for his investment decisions and being the sixth richest person with over 117 billion dollars, saw a significant impact on his wealth due to the decline in Apple's share price, which is one of Berkshire Hathaway's investments. Despite this setback, Buffett emphasizes the importance of focusing on the results of a company's operating business, as demonstrated by the group's profitable entities like Geico and others.
Source: www.ntv.de
