New York (Reuters) – Berksshire Hathaway on Saturday reported a record annual profit and increased his cash stake to $ 334.2 billion because Warren Buffett used his annual shareholder letter to warn Washington to wisely spend money and take care of those who get “short straw into life.”
Buffett’s admonition has arrived because many investors are worried that US legislators will not bypass the rise of fiscal deficits and can worse them by extending the tax reduction supported by President Donald Trump.
The 94-year-old Buffett, the sixth largest person in the world and probably his most famous investor, also acknowledged his advanced age, saying to shareholders to use the reed and spend less time on their issues at the annual Berksshire meeting on May 3.
Still, he assured the shareholders that he would be in good hands after moving the reins of the conglomerate to V
“It won’t pass long” before Abel takes power, Buffett said.
Buffett’s letter was accompanied by Berkshire’s annual report, where it reported on the third direct record annual operational profit, which increased by 27% to $ 47.44 billion.
A three -month operating profit increased by 71% to $ 14.53 billion, also a record, which analysts considered solid.
The net income for the whole year was $ 89 billion, including profit from Berksshire’s investments in usual shares such as Apple and American Express.
Berkshire’s cash share reflecting high business estimates and nine direct neighborhoods of selling multiple shares than he bought. The sale included Apple, which remained the biggest investment in the stock.
“Often nothing looks convincing; we rarely find ourselves on knee opportunities,” Buffett wrote.
‘Fiscal madness’
This year, Buffett’s 60 is headed by Berksshire, which has transformed from a failed textile company into a $ 1.03 trillion conglomerate with dozens of insurance companies, railways, energy, industry, retail and other sectors.
“Berksshire activities now affect all the corners of our country. And we’re not done,” Buffett said.
Buffett said Berkshire would continue to prefer shares, primarily US shares, through cash, even if it resists the payments of dividends to shareholders, which he has not done since 1967.
He said that re -investing in Berkshire was one of the reasons that Omaha, based in Nebraska last year, paid $ 26.8 billion of federal taxes, 5% of all payments by corporate America. Sam Buffett is worth $ 149.5 billion, said Forbes Magazine,
But he also sent a warning message to Washington, complaining that capitalism “has its mistakes and abuse in a certain terms now more terrible than ever,” with the abuse of “Scoundrels and promoters” in full force.
He called on the legislators to help preserve the stable American dollar, saying that “fiscal madness” could destroy the value of paper money, and the country sometimes “approaches the edge”.
Buffett said that the long -term success of Berksshire and the American economy, which he called “American miracle”, depended on the ability of people to participate.
This, he said, is something that an uncle itself can encourage or take away.
“Beware of many who, without their own guilt, get short straws in life. They deserve better,” Buffett wrote, addressing the Government.
“And never forget that we need to maintain a stable currency and that result requires both wisdom and alertness on your part,” he added.
Cathy Seifert, an analyst from CFRA Research who evaluates Berksshire “Hold”, said: “He talks about the business of America who is messy with his way of solving political landscapes and his influence on the macroeconomic environment. Warns Washington: Be careful where you make yourself.”
Smaller options for buying
Although Berksshire has not done a large purchase of the entire company since 2016, Buffett said he was likely to increase his combined $ 23.5 billion investments in five Japanese trading houses: ITOCH, Marubeni, Mitsubishi, Mitsui and Sumitomo.
Other shares look expensive, with the Standard & Poor’s 500 on Wednesday a new maximum and Nasdaq only 3% below the top of December 16th.
Berksshire size also inhibits its shares from the piercing of the index, as they did decades ago.
The company’s share price has increased by 15%in the last year, while Standard & Poor’s 500 has increased by 18%.
During the last decade, Berkshire shares increased 225%, while the index increased 241%, including dividends and 185%, excluding dividends, Reuters shows.
“They will have a lot of buying options, but Berkshire will never be a big double -digit compound that has been,” said Bill Smead, Chief Director of Investing in Smead Capital Management in Phoenix.
At the annual Berksshire meeting, Buffett will spend less time on stage at the Omaha Arena Center, where he, Abel and Vice President Ajit Jain will answer the shareholder questions.
Tens of thousands of people attend a meeting and weekend of shareholder events, including shopping.
Buffett told Fortune Magazine last month to still have fun and can solve several things, while other activities were “eliminated or largely minimized.”
The meeting will also not contain the traditional movie created by Buffet’s daughter Susie.
Talking about his age, Buffett said he was talking regularly on Sundays with his 91-year-old Sister Bertie, using an old-fashioned phone.
“We cover the joy of age and discuss such exciting topics as the relative merit of our bins,” he said. “In my case, usefulness is limited to avoiding falling on your face.”
(Reporting Jonathan Stempel, New York; Writing Carolina Mandl in New York; Diane Craft Mounting)
