Buffett’s Berkshire Braces for ‘Wild’ Swings From New Accounting
- Rule change could lead to a net loss, Morgan Stanley says
- First-quarter results set for Saturday, day of annual meeting
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Berkshire Hathaway Inc. investors should get ready for a bumpy ride.
Warren Buffett’s company is scheduled to report earnings Saturday morning before its annual meeting, and a new accounting rule could sink results. Berkshire is now required to report unrealized gains and losses from equity investments in net income. Buffett has warned that the change could be significant because Berkshire’s more than $170 billion stock portfolio can easily fluctuate by $10 billion or more in a quarter.