Financial Times FT.com

Buffett loses $1.6bn on derivatives

By Francesco Guerrera and Justin Baer in New York

Published: May 2 2008 23:13 | Last updated: May 2 2008 23:53

Warren Buffett’s Berkshire Hathaway was hit by a $1.6bn first-quarter non-cash loss on derivatives contracts – an asset class he once described as “financial weapons of mass destruction.

The surprise investment loss, announced on the eve of Berkshire’s annual meeting in Mr Buffett’s native Omaha, caused a 64 per cent plunge in first quarter profits to $940m, from $2.6bn in the same period last year.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this