Currency losses of $713 million vs a gain of $597 last year is a pretty big swing. This is from dollar weakness I suppose?


It's usually the opposite: a weak dollar means that foreign earnings are worth MORE, in USD, so a weak dollar should boost earnings denominated in USD. In Berkshire's particular case, there is very little in the way of foreign earnings, so dollar strength or weakness usually has very little impact on earnings.

But in this particular case, your suggestion and EVBigMac's explanation are likely correct - the hedge put on Japanese yen, so as not to be exposed to yen fluctuations, has gone the wrong way recently, as the yen has strengthened against USD (with the yen up about 8% in Q1). This is of no real significance to Berkshire, as it also means that its Japanese investments have increased in value by the same amount, presuming that Berkshire's yen exposure was fully hedged. But these are counted in separate places, the hedge in currency gains/losses, and the five trading houses are counted as equity gains/losses. JPY:USD movements will affect these in opposite directions.

dtb