Berkshire Hathaway Faces Future Financial Impact from Uncertainty
Analysis Suggests Difficulty Finding Investments Amid Global Economic Downturn
[Asia Economy International Department Reporter] Berkshire Hathaway, led by Warren Buffett, has purchased $5.1 billion worth of its own shares, CNBC reported on the 8th (local time).
This amount is more than double the $2.2 billion (approximately 2 trillion KRW) Berkshire Hathaway spent on share repurchases in the fourth quarter of last year.
CNBC highlighted that Berkshire Hathaway, facing the formidable challenge of the global economic crisis caused by the COVID-19 pandemic, has decided on the largest share repurchase in its history.
Some analysts suggest that Berkshire Hathaway might be struggling to find investment opportunities.
Berkshire Hathaway held cash assets of $140 billion (166.4 trillion KRW).
At the time when the stock market was most shocked in March, it purchased shares of Apple and Amazon, generating enormous profits, but overall performance is considered worse than last year.
Berkshire Hathaway's operating profit for the second quarter of this year was $5.51 billion (6.5 trillion KRW), about 10% lower than the same period last year. Berkshire Hathaway's stock price also fell about 19% in the first quarter.
Berkshire Hathaway stated, "The economic uncertainty and risks caused by COVID-19 may affect future earnings, cash flow, and financial condition."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
