Buffett’s Berkshire turns loss into $21bn profit - but Kraft Heinz numbers missing
Billionaire investor Warren Buffett’s sprawling conglomerate Berkshire Hathaway has revealed a gigantic profit boost after racking up a loss a year ago - but the figures exclude any hit from Kraft Heinz.
Berkshire Hathaway, which manages assets equivalent to the size of the Swiss economy, revealed profits for the first quarter of $21.7bn (£16.4bn), up significantly from the $1bn loss reported a year ago.
The figures were released hours before Berkshire Hathaway’s marathon annual shareholder meeting kicked off in Omaha, Nebraska on Saturday.
The company said that just over $16.1bn was put back into its portfolio, which include large stakes in American Express, Coca Cola and Apple.
However the results exclude its investment in Kraft Heinz, one of Mr Buffett’s biggest investments, as the company's numbers are not yet out. Berkshire Hathaway swung into the red at the end of last year after it was left bruised by a $3bn charge from its investment in the food producer.
Kraft Heinz, whose brands include Heinz baked beans and HP sauce, shocked investors in February when it revealed that the US Securities and Exchange Commission was probing alleged procurement irregularities. Shares plummeted in response.
Mr Buffett told CNBC on Saturday that Kraft Heinz was in a dispute with its auditor PwC which is why he thinks the figures haven't been signed off.
Almost 40,000 people are expected to attend Berkshire Hathaway’s annual meeting to grill Mr Buffett and his 95-year-old business partner Charlie Munger.
The event came days after Mr Buffett, 88, who is the world’s third richest man, bought a slice of Amazon for the first time, calling himself an “idiot” for not doing so sooner. He told CNBC ahead of Saturday's meeting that he had also “looked at” Uber 18 months ago.
