Warren Buffett’s company loses $22.819 million in 2022 due to accounting problems

Berkshire Hathaway, the billionaire’s company Warren Buffethe had a few net losses in 2022 of US$ 22,819 millioncompared to earnings of US$89,795 million in 2021, due to stock market volatility.

As for the last quarter of the year, the Omaha (Nebraska)-based company announced Saturday earnings of $18,164 million, less than half compared to US$39,646 million achieved between October and December 2021.

Buffett’s company accounts have been particularly volatile since 2018 due to a accounting standard which came into force then and which obliges to include the change in value of the shares heldwhich, given his huge wallet, causes big moves depending on the direction of the markets.

The famous investor, that is very critical of such rules accountants, always points to operating profits as a more reliable way to see the march of his company.

Each year, your company’s statement typically contains a caveat to this effect: “The amount of investment gain/loss in any given quarter is often meaningless and produces net earnings (losses) per share that can be very misleading for investors with little or no knowledge of accounting principles”.

Based on these operational benefits, Berkshire Hathaway has earned a 2022 benefit of $30,793 million, up 12.15%.

Following this logic, in last quarter of 2022, the investment firm reported operating income of US$6,709 million, 7.9% down compared to those obtained between October and December 2021.

In a letter from Buffet to investors, he assures that “Berkshire will always hold a large amount of US cash and treasuries along with a wide range of assets.”

“Also we will avoid behaviors that may give rise to inconvenient cash needs at inopportune times, including unprecedented financial panic and insurance losses,” said the investor, known in the financial world as the oracle of omaha

In the statement, the company noted that approximately $2.6 billion was used to repurchase Berkshire stock in the fourth quarter, bringing the year’s total to approximately $7.9 billion in company stock buybacks in the first nine. months of the year.