Despite the writedown, Berkshire said second-quarter net income surged 87% because of gains in stock investments such as Apple Inc as markets rebounded. Berkshire said Precision, which also makes industrial parts, saw revenue fall by one-third and plans an "aggressive restructuring" to shrink operations. Berkshire's stock has significantly underperformed broader markets since the end of 2018, and Seifert said investors should welcome the buybacks. "Berkshire tends to go against the grain, and when so many companies suspended buybacks, Berkshire did the opposite," she said. An accounting rule requires Berkshire to report unrealized stock gains and losses with net results, causing huge swings that Buffett considers meaningless.

Source: bd News24 August 08, 2020 17:03 UTC