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Why Buffett's Berkshire Hathaway Could Report a Loss for the Quarter

Berkshire Hathaway (BRK.A) could report a net loss for the first quarter, thanks to a new accounting rule that will force Warren Buffett's company to include unrealized gains and losses on its giant equity portfolio in its quarterly results. Morgan Stanley analyst Kai Pan wrote in a client note today that Berkshire might report a first-quarter loss as a result of the accounting change,  but that operating earnings (excluding the change in value of the equity portfolio) could rise a robust 40%. Investors will likely pay attention to the operating results.