Warren Buffett celebrated the successes of Berkshire Hathaway in his annual letter to shareholders, highlighting the company’s 60 years of growth and stability. The billionaire investor acknowledged that he has made mistakes over the years but praised his chosen successor, Greg Abel, for being ready to act on significant investment opportunities.
Buffett highlighted the importance of corporate income tax, stating that Berkshire paid $26.8 billion in taxes last year, a significant amount compared to other companies. He urged the government to be responsible with its funds, using phrases like “thank you, Uncle Sam” and emphasizing the need for wisdom and vigilance to maintain a stable currency.
The company’s cash reserves have grown significantly, reaching $334.2 billion after selling off some of its Apple and Bank of America stock. Buffett used this cash to make strategic investments, including acquiring utility businesses and increasing his stake in major Japanese conglomerates.
Despite the company’s strong financial performance, Buffett acknowledged the challenges facing Berkshire’s operating companies, citing 53% of its 189 companies reporting lower earnings last year. He emphasized the importance of focusing on operating profits rather than bottom-line numbers, which can be misleading due to varying quarterly investment values.
Analysts expressed mixed views on Berkshire’s performance, with some concerns about the company’s manufacturing and retail sectors. However, Buffett remains optimistic, and his actions suggest that he is “bearish” on the stock market but doesn’t want to alarm investors. The company expects a significant loss in the first quarter due to insurance claims related to California wildfires.
In a nod to his age, Buffett announced that this year’s shareholder meeting will be shorter, with limited Q&A sessions. He also acknowledged using a cane to avoid accidents, showing a willingness to adapt and prioritize his health as he continues to lead Berkshire Hathaway.
Source: https://apnews.com/article/warren-buffett-berkshire-hathaway-annual-shareholders-letter-89d882488c22faf86c684993022c1428