Berkshire profit falls as investment gains tumble

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Berkshire profit falls as investment gains tumble
Source: CNBC Business

Berkshire Hathaway, the conglomerate run by billionaire investor Warren Buffett, on Friday said first-quarter profit fell 27 percent, reflecting a big decline in investment gains.

Net income fell to $4.06 billion, or $2,469 per Class A share, from $5.59 billion, or $3,401, a year earlier.

Operating profit, which excludes investment and derivative gains and losses, fell 5 percent to $3.56 billion, or $2,163 per Class A share, from $3.74 billion, or $2,274.

Buffett believes Berkshire’s investment and derivative gains in any given quarter are often meaningless, but accounting rules require Berkshire to report them in its earnings statements.