Warren Buffett’s Berkshire Hathaway is faring the bad weather where the company’s second-quarter profit has declined 40 percent. This has largely been because of the derivative bets on equity indexes. The net income of the company fell down to $1.97 billion; or $1,195 a share, from $3.3 billion, or $2,123, in the same period as compared to last year.

Buffet’s story has been a success tale because of his choice of picking up stocks that led him to own the third largest personal fortune. But he has been facing accumulated losses on equity derivatives since the 2008 financial crisis.

Reportedly Buffett has spent $2.56 billion on fixed-maturity securities and $1.64 billion on equities in the quarter. His dealings also includes of selling off $2 billion of fixed-income holdings and $427 million of stocks.

As a matter of fact, over the last two years, Buffet’s company has used his company’s capital to make acquisitions and divert its funds to firms that were withered by the bad weather of recession.

So much so, that Berkshire has even cut jobs and restructured the top management in order to scale up with the falling retail and industrial demand during the recession.