In his annual letter to Berkshire Hathaway shareholders, Warren Buffett revealed that he would “not be long” before he could become successful as CEO of Greg Abel, who runs the company’s energy division.
Buffett, 94, a respected investor known as Omaha’s Oracle, was as reflective and folklore as usual in his letter, published Saturday.
Buffett didn’t name, but in some sections of his 13-page letter it appeared to touch on the political and cultural uproars of the moment. As always, he urged investors to stay away from the weeds of the moment and continue to focus on the long-term performance that has been his investment spirit for over 60 years. He boasted that he described Berkshire’s record payment of $26.8 billion federal tax in 2024, and publicly publicizes other C-Sweet leaders their mistakes as business plans move south. I gently ribbed what I didn’t like to admit to.
“It won’t take long for Greg Abel to replace me as CEO at age 94 and write my annual letter. Greg said that the ‘report’ is what Berkshire CEO owe it to the owner every year. We share Berkshire beliefs,” Buffett wrote. “And he also realizes that once you start to deceive shareholders, you are immediately believing in your Barony and cheating on yourself.”
Buffett reinforced his points by calculating some numbers.
“From 2019-23, I used the word “mistake” or “error” 16 times in my letters to you. Many other giants use neither word to that extent. Amazon must admit that it made a cruel and honest observation in its 2021 letter. Elsewhere, it was generally happy stories and photographs,” he writes. “I was also the director of a large public company where ‘mistakes’ or ‘wrong’ was a word that was forbidden on boards and analysts’ calls. That taboo implies administrative perfection, which has always made me nervous (but sometimes there may be legal issues that make limited arguments wise. We are very I live in a society of litigation.)
Buffett was not shy about pointing out Berkshire’s greater profits and contributions to the IRS’ financial resources compared to the recent Wall Street and the high-tech giants that dominate pop culture.
Buffett last year claimed that Berkshire had “paid much more corporate income taxes than the US government had ever received from any company. Berkshire’s $26.8 billion marked “about 5% of what everything in America paid.” It represents. (In addition, we paid a significant amount of income tax to foreign governments and 44 states,” he wrote. Since 1965, Berkshire has narrowed $100 billion to the US Treasury, and Buffett. is writing.
Buffett’s letter came when Berkshire reported on his sparkling Q4 and his full year income. Operating profits for a diverse collection of fully owned companies, focusing primarily on insurance, energy, transportation and banking, have increased by around 71%, with the company’s books reaching $334.2 billion. It also owns minority shareholders in blue chip companies such as Apple, American Express, Coca-Cola and Moody’s. Buffett said the company is investing more in holding companies like a handful of Japan-based Berkshire, namely Ito, Marbeni, Mitsubishi, Mitsui and China.
Buffett dealt with a high stack of greenbacks on Berkshire’s balance sheet. Shareholders ensure that our focus is on investing in solid corporate securities that pay stable profits over time.
“Even though some commentators now consider Berkshire’s extraordinary cash job, the majority of your money remains in the stocks. That preference remains the same,” Buffett wrote. “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.”
Buffett also nodded to the recent volatility of the US economy.
“But like individuals with a talent of hope, companies will usually find ways to deal with financial instability as long as the goods and services are desired by the citizens of the country. So, personal skills There are also. I had to resort to stocks throughout my life due to lack of assets such as athletic excellence, great voice, special talent, medical and legal skills. In fact, I am America. dependent on the success of companies, and will continue to do so,” Buffett wrote.
Buffett materially wrote about 2025, marking the 60th anniversary of taking away Berkshire’s reins, which were invested in the failed textile business of the time. He paid multiple tributes to longtime partner Charles Munger, who passed away in November 2023 at the age of 99.
“As Charlie and I have always admitted, Berkshire would not have achieved that outcome anywhere except America, but America would have been successful if Berkshire hadn’t existed,” Buffett wrote. . “Thank you, Uncle Sam. One day your nie and nephe in Berkshire hope to send even bigger payments than in 2024. Use it wisely. If you’re your fault, you’ll get a short straw in your life. Take care of many people. They are more valuable. And never forget that we need to maintain a stable currency, and the consequences are on your side You need both wisdom and vigilance.”
Buffett also advocated capitalism at the time of global volatility and rising income inequality at home. Buffett appears to argue that, even if everyday Americans don’t look like that on the surface, they are deeply invested in the country’s financial health.
“In some way, the deployment of wise – more imaginative – citizen savings is necessary to promote the ever-growing social production of the goods and services they desire. This system is called capitalism.” writes Buffett. “It has its flaws and abuse — it’s worse than ever in certain respects — but it can also make an unparalleled wonder with other economic systems work.”
He then advocated American exceptionalism during a time of enormous social upheaval.
“The American process has not always been clean. Our country has forever had many villains and promoters trying to exploit people they mistakenly trust in their savings. But such injustice Even in acts (still fully power today), and even in many developments of capital that are ultimately amazed by brutal competition and destructive innovation, American savings are the result of colonialism. It has brought volume and quality production beyond the dream of a person. From a base of just 4 million people, and despite the brutal internal war early on, Americans compete with another American – America It quickly changed the world,” Buffett wrote.
