Warren Buffett prefers shares due to cash and other laying away from its annual letter to shareholders Berksshire
Be sure, Warren Buffett would always rather put money in the shares over the holding of cash instruments. Accordingly, the big crowd of cash in the treasury accounts is not very painful, the billionaire investor wrote on Saturday in his annual letter to shareholders Berksshire Hathaway Inc.
“Despite what some commentators are currently seeing as an extraordinary monetary position in Berksshire, the vast majority of your money remains in capital. That preference will not change,” Buffett said. (Read the letter here.)
Indeed, Berksshire’s growing pile of money was a source of fascination For shareholders and other investors, who read Buffett’s annual massive and careful about their remarks about signals on how to implement money or whether the accumulation indicates concerns about the wider market.
Berksshire’s mustache must have shown Gotovina and Equivalent to $ 334.2 billion in the fourth quarter compared to $ 325.2 billion in the third quarter and $ 276.9 billion in the second morning in the fourth quarterly and annual report on Saturday morning . The company’s operational profit in the fourth quarter increased by $ 71% to $ 14.5 billion.
That money was welcome. Buffett started a letter saying that Berksshire “did better than I expected, although 53% of our 189 operating companies reported a decline in earnings. We were assisted by a predictable great gain in investment revenues as the Treasury Billings improved and we significantly increased the stakes of these high-teaching short-term securities. “
Accordingly, Buffett emphasized that Berksshire will never prefer ownership of property by equivalent money in relation to ownership of “good companies” either through control or partial ownership.
“Paper money can see 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,” Buffett wrote. “Fixed Coupon bonds do not provide waste protection currencies. “
When it comes to Gotovina’s deployment, Buffett offered an analysis between Berksshire with operative companies, with a proportion of at least 80% and often 100%, and publicly traded in stocks. Those 189 branches share similarities to market usual shares, but they are far from identical, he said, including “a few rare gems, many good, Ali-from-fanbus companies and some lags that were disappointed.”
