Buffett was difficult to consider in his long term as an executive director – unlike 10 years ago when he and his longtime partner of investment by Charlie Munger, who died 2023betrayed a separate reflection to the company after 50 years of its leadership. But Berksshire will offer a special book 60 of the 60th anniversary at an annual meeting with stories and lessons from the history of the company.
Buffett cited the fact that Berksshire paid zero income tax in the decade before taking over in 1965 as a sure sign that investment was a mistake, but over time Berksshire paid the IRS -in growing with the conglomer to reach 26.8 billion dollars in recent years – “far more in profit tax from the US government ever received from any company – even US Technology titans who ordered market values in trillion. “
Buffett barely mentioned politics and current events in his recent letters – he preferred to be further than any controversial to harm Berkshire’s companies – but on Saturday he urged the government to be responsible with the money that sends him.
“Thank you, my uncle. One day your nephews and nephews in Berksshire I hope you will send you even more payments than we did in 2024. Set it wisely. Watch many who, without your own guilt, get into short straws in the short straws He deserves life.
CFRA research analyst Cathy Seifert said, “I honestly thought in a very subtle way that was a strong message.”
Investment power
ABEL will have a lot of resources to work when it eventually takes over since Berksshire now has $ 334.2 billion in cash last year after selling most of its Apple and Bank of America in last year and continuing to create money from all its branches involving Geico Insurance, BNSF Railroad, a collection of major utility services and the range of major manufacturers and famous Retail companies that include brands like Dairy Queen and See’s Candy. It is almost twice as much as $ 167.6 billion, Berksshire, which took place a year ago.
Buffett found several things that used part of that money to last year spending $ 3.9 billion to acquire the rest of your municipal business from a former partner’s estate and another $ 2.6 billion to buy the rest of the chain to stop the pilot truck ‘He already owns. Buffett said he also increased the investment of Berksshire in five major Japanese conglomerates, and they would probably invest more in them because these companies agreed to increase their ownership more than 10%. Berksshire has spent $ 13.8 billion on those Japanese investments now worth $ 23.5 billion in the last six years.
But while Buffett has struggled in recent years to find great acquisitions, he confirmed that he did not plan to offer a dividend because he believes that reinvesting of money would create better yields.
Investor Bill Smead of Smead Capital Management said Buffet’s actions are actually “a bear as hell, but it won’t admit it.” He said Buffett doesn’t want to scare people, but shareholders can look for their past writings and their actions to see it probably thinks the stock market is terribly expensive.
But Macrae Sykes, a portfolio manager at Gabelli Funds, said Berksshire -Gotovina should also be viewed as key assets because it provides “a competitive Berksshire ability to react alarm and in a significant extent when motivated. Although rarely, when the conglomerate is scheduled, He has historically led to measurable future yields. “
Softening results?
Buffett said Berkshire was better than he expected last year, although 53% of 189 companies she owns a lower earnings in 2024. This is because Berksshire has collected more interest on all of his short -term investments, and his insurance units have reported much more profit.
Berksshire’s lower numbers can make it difficult to see how his companies really work because numbers include the value of the company’s paper, which can vary in the big quarter until the quarter. So, Buffett has long been recommended to focus on operational profits.
In the fourth quarter Berksshire earned $ 19.69 billion in profit or $ 13,695 per class A. This is just over half of $ 37.57 billion, or $ 26,043 per class per share, a year ago. But operational earnings tell a much different story. To this extent, the operational profit has grown significantly to $ 14.5 billion, or $ 10,102.07 per class A section, in the amount of $ 8.5 billion, or $ 5,878.21 per share. Four analysts surveyed by the FactSet Research have been predicted by an operational earning of $ 6,932 per share.
Edward analyst Jones Jim Shanahan said weakness in Berksshire’s operational companies is worrying.
“There may be no better company that should look for a variety in the power of wider production, retail, consumer economy from Berkshire. And these results look soft to me, and that makes me worried about how much the economy could really be,” said Shanahan.
And Berksshire’s earnings could be reduced during 2025. If that weakness continued, he said. The company also said it was expecting to record at least $ 1.3 billion in the first quarter of loss of loss of insurance requirements regarding devastating California fires.
Changes to Woodstock for Capitalists
In what he could nod at the 94-year-old Buffett’s age, the legendary investor announced that this year’s meeting of shareholders in May, who routinely attracts tens of thousands of people, will shorter. Two Vice Presidents of Buffett and Berksshire will answer questions from 8:00 to 1pm – a few hours less than usual. Buffett also acknowledged these days using a reed to avoid “falling on my face.”
Buffett said this year that there would be no humorous movie that traditionally opens a meeting with the famous stone, sketch and ads from Berksshire Companies. But he assured that shareholders would still have enough time to buy products from all Berkshire companies that set up cabins in the exhibition hall near Omah Arena, where the meeting was held.
