Berksshire Hathaway (Mustache,, Mustache) Executive Director Warren Buffett defended the growing crowd of his company money, reflected on mistakes and re -published what he called “American Miracle” of American Economic Growth in the last two centuries, since the conglomerate reported about a record operating earning of 47.4 billion dollars last year.
Writing in his 2024 Annual letter In order to make Berksshire shareholders on Saturday, Buffett said that these record profits were despite more than half (53%) of operational companies, which reported a decline in earnings last year.
“2024 Berksshire is better than I expected, although 53% of our 189 operational companies reported a decline in earnings,” Buffett wrote. “We were helped by a predictable great gain in investment revenues that the Objective Laws were enacted improved and we significantly increased the proportion of these high-teaching short-term securities.”
At the end of the year, Berksshire’s pile of money and other value papers similar to cash, such as treasury accounts, amounted to $ 334.2 billion, almost doubled $ 167.6 billion recorded at the end of 2023. The value of the Berksshire portfolio in the capital was $ 272 billion amounted to $ 272 billion amounted to $ 272 billion at the end of the year; At the end of 2023, these proportions were estimated at $ 354 billion.
Great sales of a Berksshire stake in Apple (Aapl) During the first, second and third quarters of 2024, they recorded the value of their stakes in the fall of a technological giant for about $ 100 billion.
Chairman Berksshire Hathaway Warren Buffett participates in the annual shareholder of Berksshire Hathaway Inc in Omahi, Nebraska, USA, May 3, 2024. Reuters/Scott Morgan ·Reuters / Reuters
“Despite what some commentators are currently seeing as an extraordinary monetary position in Berksshire, the vast majority of your money remains in capital,” Buffett wrote on Saturday. “That preference will not change.
“While our ownership is in market The shares were switched from $ 354 billion to $ 272 billion last year, the value of our non-cited controlled shares somewhat increased and remains far greater than values market portfolio.
“Berksshire shareholders can be sure that we will forever implement a significant majority of our money in capital – mostly US shares, although many of them will have international operations of importance.”
For a year -round 2024, the Berksshire total revenue reached $ 371.4 billion, which is USD $ 364.5 billion in the previous year. Its investment gains increased $ 41.6 billion, which is less than $ 58.9 billion in $ 2023 and reflects that these numbers can use Buffett’s words, “wild and unpredictable” year after year. Operational profit of $ 47.4 billion of $ 47.4 billion excludes the gains or losses of its investment portfolio.
Berksshire reported on the net earnings that included his $ 89 billion investment gain last year, which is a drop of $ 96.2 billion in 2023.
At the top of this year’s annual letter, Buffett began with the thoughts of many mistakes made in Berksshire Hathaway over the years, but is generally generally generally on the advice of the late Tom Murphy: “Praise by name, criticize by the category.”
“Sometimes I made a mistake in assessing the future job economy I bought for Berksshire – each case of capital distribution made a mistake partial Ownership of companies – and 100% acquisition of companies.
“At other times, I was wrong when assessing the ability or loyalty of manager Berksshire.
“During the 2019-23 period, I used the words” error “or” error “16 times in my letters,” Buffett added. “Many other huge companies have never used a single word in that range.”
Buffett added that, given its advanced age, “it will not be long” before Greg Abel takes its place as an executive director and writes annual letters to the Berksshire shareholders.
“Greg shares Berksshire Creed that the” report “is what the Berksshire CEO owes the owners a year,” Buffett wrote. “And he also understands that if you start fooling your shareholders, you will soon trust your own balloon and fool yourself.”
Compared to the current investments of Berkshire, Buffett also noticed some of the “disappointments” that fill that portfolio.
“We don’t own anything that is the main move,” Buffett wrote, “but we have a number I didn’t need to buy.”
Buffett, as he did in recent years, also boasted of Berksshire’s tax expenses and announced the American economic tail wind that used him and his jobs as an investor and operator.
In this year’s letter, Buffett noted that $ 26.8 billion in taxes paid by Berksshire this year is mostly every single company that has ever paid the US government.
“To be precise, Berksshire made four IRS payments last year, which amounted to $ 26.8 billion. It’s approximately 5% of what was paid by all corporate America,” Buffett wrote.
“In a very A smaller way, the Berksshire shareholders participated in the American miracle to the previous dividends, deciding in this way to reinvest rather than consume, “Buffett wrote.
“Originally, this reinvestment was tiny, almost meaningless, but over time it was mushrooming, reflecting a mixture of permanent savings culture, combined with the magic of long -term assembly.
“Berksshire activities now affect all the corners of our country. And we are not done … One day in Berksshire I hope you will send you even more payments than we did in 2024. You spend wisely.”
In addition to commenting on Berkshire and other investment topics, Buffett’s letter has become more careful for changes in the company’s annual meeting, usually held on the first weekend in May.
This year’s edition, set for May 3, will present “a bit of a changed schedule,” Buffett wrote on Saturday, and the famous Q&A session begins and ends earlier.
Buffett will once again join Vice President Berksshire Greg Abel-Buffett 13:00
In previous years, Buffett’s Q&A with shareholders stretched towards local time at 15:00; 2020 Q&A did their best into the night.
