Omaha, neb. (AP) – billionaire Warren Buffett is considered one of the world’s greatest investors, so Annual letters Berksshire Hathaway shareholders are always read carefully for lessons.
Buffett no longer engages in politics or current events in his letters, so he will not offend anyone who could bring him to his many companies that include known as Geico Insurance, Dairy Queen and Helzberg jewelry.
But Buffett’s the latest letter Posted on Saturday offers an insight into investment and some lessons from its six decades at the head of Berksshire. Here’s a sample:
On what the US government should do:
“Thanks, I’m uncle. One day your nephews and nephews in Berksshire hope to send you even more payments than we did in 2024. Spend it wisely. Watch many who, without their own guilt, get short straws in life. They deserve better. And never forget that we need to maintain a stable currency, and that result requires both wisdom and alertness on your part. “
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About the future of Berksshire’s well-read annual report:
“In 94, it won’t take long before Greg Abel replaces me as executive director and writes annual letters. Greg shares Berksshire Creed that the” report “is what the Berksshire Executive Director owes to the owners a year. And he also understands that if you start fooling your shareholders , you will soon trust your own balloon and fool yourself. “
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About making errors over the years:
“Of course, I expect that I will buy my part of the mistakes with companies Berksshire and sometimes go wrong in evaluating the type of person I do.
“But I also had many pleasant surprises both in the potential of business, as well as the ability and loyalty of managers. And our experience is that one winning decision can eventually make a wonderful difference. happiness in finding Charlie Munger as a unique partner, a personal advisor and a steady friend.)
“The mistakes have disappeared; the winners may bloom forever.”
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To what Buffett relies on profit:
“Companies, as well as individuals with the desired talent, will usually find a way to deal with financial instability as long as their goods or services want the citizenship of the country. So, with personal skills. Missing property such as athletic excellence, beautiful voice, medical or legal skills, or, in this case, any special talent, I had to rely on shares during my life. In fact, I depended on the success of US companies and I will continue to do it. “
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About Berksshire’s investments in the acquisition of whole companies as opposed to investing in shares:
“Understandably, really excellent companies are rarely offered in full, but small fractions of these gems can be purchased from Monday to Friday at Wall Street and, very occasionally, sell at favorable prices.
“We are impartial in our choice of capital vehicles, investing in any diversity based on a place where we can best implement savings (and my family). Often nothing looks convincing; We rarely find ourselves on occasions. Greg lived vividly his ability to act in such times. “
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About American prosperity:
“During only 235 years of existence, our country’s progress could not have imagined even the most optimistic colonists in 1789, when the Constitution was adopted and the energy of the country liberated.
“True, our country in infants sometimes borrowed abroad to supplement their own savings. But at the same time, many Americans needed to save consistently, and then they needed those savings or other Americans to wisely deploy capital so accessible. If America consumed everything if it had produced, the earth would spin its wheels.
“The American process was not always beautiful – our country forever had many thieves and promoters who seek to use those who miscruited them with their savings. But even with such abuse – which still remains in full force – and also a lot of capital introduction eventually flew by brutal competition or destroying innovation, saving Americans delivered the amount and quality of production outside of dreams of any colonist.
“From a base of only four million people – and despite the brutal inner war, early, stabbing one American against another – America changed the world in the blink of a heavenly eye.”
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On Berksshire’s huge cash crowd of $ 334.2 billion:
“Despite what some commentators currently see as an extraordinary cash position in Berksshire, the vast majority of your money remains in capital. This advantage will not change.
“Although our ownership in market sections last year descended from $ 354 billion to $ 272 billion, the value of our non-cited controlled shares has increased somewhat and remains far higher than the value of market portfolio.
“Berksshire shareholders can be sure that we will forever implement a significant majority of our money in capital-hungry US shares, although many of them will have international operations of importance. Berksshire will never prefer property ownership of equivalent Gotovina compared to ownership of good companies, be it controlled or partially owned.
“Paper money can see that its value evaporates if fiscal craziness prevails. In some countries, this reckless practice has become commonplace, and in the short history of our country the US has approached the edge. The fixed co -coax bonds do not provide protection against waste currency.”
