Berkshire Hathaway’s Distorted Quarterly Results

1. “The new rule says that the net change in unrealized investment gains and losses in stocks we hold must be included in all net income figures we report to you.
2. However, a headline highlighting the company’s $9.3 billion of net operating earnings during the quarter would better serve to inform readers about the economic reality of what actually took place.
3. Let’s take a look at net earnings reported on a quarterly basis: