Warren Buffett, CEO of Berkshire Hathaway (BRK-B, BRK-A), defended his company’s growth cash mountain, reflecting his mistakes, and once again he has made the economic growth of our past two centuries. They promoted what they called “American miracles.” Last year, operating profit was $47.4 billion.
Buffett wrote in his annual letter to Berkshire shareholders in 2024, and Buffett said that despite half of the company’s operating companies (53%) reporting a decline in revenues last year, Buffett said that He said that there has been a lot of profit.
“In 2024, Berkshire did better than I expected, but 53% of 189 operating companies reported a decline in revenue,” Buffett wrote. “We supported a predictable, large profitable return on investment revenue as the Treasury bill improved and significantly increased the holdings of these highly liquid short-term securities.”
At the end of the year, Berkshire’s pile of securities like cash and other cash was $334.2 billion, almost twice the $167.6 billion seen at the end of 2023. Berkshire’s equity portfolio was valued at $272 billion at the end of the year. At the end of 2023, these holdings were valued at $354 billion.
Key sales of Apple’s Berkshire stock in the first, second and third quarters of 2024 reduced the value of the tech giant’s holdings by approximately $100 billion.
Berkshire Hathaway Chairman Warren Buffett will be attending the Berkshire Hathaway Inc. Annual Shareholders Meeting held on May 3, 2024 in Omaha, Nebraska, USA. Reuters/Scott Morgan ・Reuters/Reuters
“Even though some commentators now consider it an extraordinary cash job in Berkshire, the majority of your money remains in the stock,” Buffett wrote Saturday. “That preference remains the same.
“While marketable stock ownership fell downwards from $354 billion to $272 billion last year, the value of uncited stocks has increased somewhat, far more than the value of marketable portfolios It remains big.
“Berkshire shareholders can be sure we will deploy a significant majority of their money into stocks forever. Many of these have important international businesses, but most of them are owns American stocks.”
For the full year of 2024, Berkshire’s total revenues reached $371.4 billion, up from $364.5 billion the previous year. That investment growth tallies $41.6 billion from $58.9 billion in 2023, reflecting how these figures can be used “swing roughly and unpredictably” year by year. The company’s $47.4 billion operating income excludes profits or losses from its investment portfolio.
Net income reported to include Berkshire’s investment returns tallyed $89 billion last year, from $96.2 billion in 2023.
The story continues
At the top of this year’s annual letter, Buffett began with reflection on many mistakes made at Berkshire Hathaway over the years, but he generally maintained his comments on the advice of the late Tom Murphy.
“We have made mistakes in assessing the future economics of businesses purchased for Berkshire. Each has a wrong capital allocation case. It happens in both judgments regarding marketable stocks. These are considered partial ownership of the company – and 100% acquisition of the company.
“Other times I made mistakes when assessing the ability and fidelity of my manager.
“From 2019-23, I used the word ‘mistake’ or ‘error’ in my letters to you 16 times,” Buffett added. “Many other giants use neither word to that extent.”
Buffett added that “it’s not long” before Greg Abel has achieved CEO status given his senior age and writes annual letters to Berkshire shareholders.
“Greg shares Berkshire’s belief that the ‘report’ is something Berkshire CEO owe to its owners each year,” Buffett wrote. “And he also realizes that once you start to deceive shareholders, you are immediately believing in your own Balany and cheating on yourself.”
Looking at Berkshire’s current investments, Buffett also noted some of the “disappointments” that live in its portfolio.
“We don’t own anything that’s a big drug,” Buffett writes.
Buffett, as he did in recent years, boasted of Berkshire’s tax spending and promoted the US economic tailwinds that have benefited him and his business as an investor and operator.
In this year’s letter, Buffett said the $26.8 billion taxes Berkshire paid this year was the most taxes he has ever paid to the US government.
“To be precise, Berkshire made four payments to the IRS last year, totaling $26.8 billion, about 5% of what all America in the US paid,” Buffett wrote.
“In a very small way, Berkshire shareholders have joined the American miracle by moving forward with dividends, and thus chose to reinvest rather than consume,” Buffett writes.
“In the beginning, this reinvestment was small and almost meaningless, but over time it became a mushroom, combined with the long-term compound magic, reflecting a sustained cultural mixture of savings. .
“Berkshire’s activities are now affecting every corner of our country, and we’re not finished… One day Berkshire’s nie and ne will send even bigger payments than in 2024 I hope. Spend it wisely.”
In addition to commentary on Berkshire’s business and other investment topics, Buffett’s letters are more closely monitored for changes in the company’s vast annual meeting, which usually took place over the first weekend of May.
This year’s edition, set for May 3rd, will introduce a “slightly changed schedule.”
Buffett will be re-joined by Ajit Jain for two and a half hours, starting at 8am, Vice-Chair Greg Abel-Buffett’s heirs, and Ajit Jain will be rejoined for two and a half hours, when Ajit Jain’s short break. The Q&A session will be concluded by 1pm
Over the past few years, Buffett’s Q&A with shareholders has been extended until 3pm local time. In 2020, Q&A was spent the night.
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