Berkshire Hathaway’s put option liabilities climb

Fair value liability climbed to $1.6 billion at end-June

Berkshire Hathaway incurred a $597 million loss from sold equity index put options over the first half of the year, as the derivatives moved closer to their strike prices following the outbreak of the coronavirus crisis.

The fair value liability of the options on Berkshire’s balance sheet climbed to almost $1.6 billion as of end-June, from $968 million six months prior and just under $1.5 billion a year ago. At end-March, after several weeks in which key indexes fell between 20% and 25%