23:58:58 EDT Thu 16 May 2024
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Globe/wire say Berkshire "under pressure" over 2020 fire

2024-02-27 08:44 ET - In the News

The Globe and Mail reports in its Tuesday edition that Berkshire Hathaway's shares pared early gains on Monday, slowing its march to $1-trillion market value on investor worries after the U.S. government warned of a lawsuit against its power company, PacifiCorp (all figures U.S.). A Reuters dispatch to The Globe says that Berkshire disclosed the risk of a lawsuit against its unit over its alleged failure to cover $356-million in costs associated with the 2020 Slater wildfire in the Oregon-California border region. The investment conglomerate had on Saturday warned that the parent of PacifiCorp and one of Berkshire's biggest businesses outside insurance, Berkshire Hathaway Energy, was under pressure. "It will be many years until we know the final tally from BHE's forest-fire losses and can intelligently make decisions about the desirability of future investments in vulnerable western states," Berkshire's Warren Buffett wrote in his annual letter to shareholders. He also toned down expectations for Berkshire's share price, saying it did not have many lucrative investment opportunities left, while reassuring investors that the biggest financial firm by market value was "built to last." Its cash pile is $167.6-billion.

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