Berkshire Q2-2009
Q2-2009: $3.3 billion vs $2.9 billion a year earlier and a $1.5 billion loss in Q1-2009. Nearly half of the quarter’s earnings due to derivatives:
Gains from derivative contracts during the second quarter primarily relate to our long duration equity index put option contracts. The gains primarily resulted from the increases in the values of the four underlying equity indexes during the quarter that ranged from 8% to 23%. As we have previously discussed, our derivative contracts, subject as they are to mark-to-market accounting, will produce extreme volatility in our periodic reported earnings.