Warren Buffett’s Berkshire Hathaway Inc. said profit slipped
9 percent in the second quarter as derivative bets declined in value. Net income slid to $3.11 billion, or $1,882 a
share, from $3.42 billion, or $2,072, a year earlier, the Omaha, Nebraska-
based company said today in a statement. Operating earnings, which exclude some
investment results, were $2,252 a share, beating the $1,777 average estimate
(2FA) of 3 analysts surveyed by Bloomberg.
Buffett, 81, uses derivatives to speculate on long-term
gains in stocks and the creditworthiness of corporate and municipal borrowers.
The contracts that are tied to equity indexes in the U.S., Europe and Japan
aren’t scheduled to mature until 2018 or later. Berkshire’s liabilities rise
when the benchmarks fall, as they did in the second quarter…..
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