Berkshire Hathaway, a subsidiary of US business tycoon Warren Buffett, made a jump in profits from its investments in listed companies in the second quarter of this year by about 87% in the midst of the Corona crisis, when stock markets around the world were witnessing violent selling waves amid epidemic-related concerns.
Berkshire Hathaway recorded a net profit for the second quarter of this year, amounting to about $ 26.3 billion, or $ 16,314 for preferred shares of “A” category, up from about $ 14.1 billion for the same period last year, according to Market Watch.
And that period witnessed, according to the company’s announcement, the write-off of assets in the aviation industry, about 10 billion dollars, due to the Corona pandemic, which caused a state of paralysis in the global aviation industry scene with an almost total suspension of air traffic.
The company said it had devalued its subsidiary, Precision Castparts, which specializes in making aircraft engines, in the midst of the pandemic, which has wiped out about 30% of the company’s workforce with a sharp decline in demand.
In early May, Buffett announced the withdrawal of his investments in all airline stocks, describing his decision to invest in them as “wrong,” with his exit from stakes in the 4 largest American airlines, which by the end of last year amounted to 11% in “Delta Air Lines” and 10% in ” American Airlines, the same percentage in “Southwest Airlines” and 9% in “United Airlines”.
Buffett said at the time in an interview with the American “CNBC” network that the volume of these investments ranges between 7-8 billion dollars, noting that no gains were made from these investments.
Buffett’s Berkshire Hathaway has a package of investments in about 90 giants such as Apple, American Express, Coca-Cola and Bank of America, which are at the forefront of Buffett’s investment options.