London Daily

Focus on the big picture.
Sunday, Jan 11, 2026

Buffett's Berkshire Hathaway reports nearly $50 billion loss

Buffett's Berkshire Hathaway reports nearly $50 billion loss

Berkshire Hathaway, the massive conglomerate run by billionaire Warren Buffett, posted a nearly $50 billion net loss in the first quarter -- the biggest loss ever for the storied company.
Berkshire, which owns companies including Geico auto insurer, Burlington Northern Santa Fe railroad, Dairy Queen, Duracell and many other financial, industrial and consumer firms, has been hit hard by the Covid-19 pandemic. Just like the rest of the market and economy.

The company said in a regulatory filing Saturday morning that before the coronavirus hit the United States in mid-March, many of Berkshire's businesses were posting revenue and earnings increases compared to a year ago. But that quickly changed.

"As efforts to contain the spread of the COVID-19 pandemic accelerated in the second half of March and continued through April, most of our businesses were negatively affected, with the effects to date ranging from relatively minor to severe," Berkshire said in the filing.

The company's overall revenue rose slightly from the year ago quarter, to $61.3 billion. But Berkshire said Saturday that the essential businesses it owns -- its railroad, utilities and energy, and insurance units, "slowed considerably in April."

And the company added "several of our retailing businesses and certain manufacturing and service businesses are being severely impacted due to closures of facilities where crowds can gather, such as retail stores, restaurants, and entertainment venues."
As a result of the massive shift in consumer behavior, Berkshire said that various subsidiaries have had to furlough employees, cut hourly wages and salaries and reduce capital spending plans in order to preserve capital.

"While we believe that these necessary actions are temporary, we cannot reliably predict when business activities at our numerous and diverse operations will normalize," the company said. "We also cannot predict how these events will alter the future consumption patterns of consumers and businesses we serve."

Most of the Berkshire losses were attributable to the enormous drops in the value of the companies that Berkshire owns in its investment portfolio rather than in declines in sales and profits at its own subsidiaries.

Berkshire said it wrote down the value of its equity investments by a whopping $54.5 billion. Its operating earnings, a measure that Buffett prefers to focus on, rose nearly 6% to $5.9 billion in the quarter.

Shares of Berkshire Hathaway (BRKA) are down nearly 20% so far this year.

Buffett is arguably most famous as an investing guru. Berkshire Hathaway (BRKB) currently owns large stakes in top American blue chip companies Apple (AAPL), Bank of America (BAC), Coca-Cola (KO), Wells Fargo (WFC) and Kraft Heinz (KHC). He is currently worth about $72 billion according to Forbes.

Berkshire Hathaway has had large losses in the past, but those were attributable more specifically to its own investments rather than a downturn in the broader economy.

Just over a year ago, the firm posted what was until now its largest loss because of difficulties at its Kraft Heinz unit, where sales were hit hard in as shoppers increasingly shun processed foods, The company posted a more than $25 billion net loss in the fourth quarter of 2018 as it wrote down that position.

Investors now are wondering whether Berkshire will look to invest even more in top US firms in light of the Covid-19 outbreak. After all, the company is sitting on a gigantic pile of cash, and disclosed Saturday that it now has $137.3 billion on its balance sheet.

Berkshire Hathaway's shareholder meeting takes place Saturday afternoon, and Buffett will take questions from shareholders and a few reporters in a virtual meeting that will be livestreamed exclusively on Yahoo Finance.
Newsletter

Related Articles

0:00
0:00
Close
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
×