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OMAHA, Nebr. (AP) – Billionaire Warren Buffett said the company he built over decades of acquisitions continued to perform well, although he had not found any significant offers at attractive prices recently.
Buffett issued his annual letter to shareholders of Berkshire Hathaway Inc. on Saturday. He wrote that investors should continue to bet on the US economy because Berkshire has flourished, but they should not forget the rest of the world.
"There are also many other countries in the world that have a bright future. In this regard, we should rejoice: Americans will be both more prosperous and safer if all nations prosper, "wrote Buffett. "At Berkshire, we hope to invest significant sums across borders."
Buffett's letter is always well-read in the business world because of his remarkable background, his habit of dissecting economics or other topics, and his talent for explaining complex topics in plain language.
But in recent years, he has simplified his letters and focused mainly on Berkshire's business. The wise counsel and spirit that once formed Buffett's letters to read are now reserved chiefly for the annual meeting and the meetings of the society.
"For me, it's becoming less of an event," Edward Jones analyst Jim Shanahan said of the letter.
Buffett wrote that the two potential successors he had promoted last year to oversee most day-to-day operations are doing well, but the 88-year-old mogul has made no mention of his retirement.
Greg Abel and Ajit Jain, Berkshire senior executives, joined the company's board of directors last January and took on new responsibilities. Jain now oversees all insurance activities of the conglomerate, while Abel oversees all conglomerate business operations.
"These moves were late," Buffett said. "Berkshire is now much better managed than when I oversaw operations alone. Ajit and Greg have rare talents and Berkshire's blood runs in their veins. "
Buffett wrote that Berkshire continues to hold about $ 130 billion in cash and short-term investments because he has not found a reasonably priced acquisition in recent years, so he will likely continue to invest more in actions.
"Prices are exorbitant for companies with decent long-term prospects," he wrote.
Shanahan, the Edward Jones analyst, said he was disappointed that Berkshire was not using more of his cash to buy back his own stocks or to invest in other stocks, especially when the market was down towards end of the year.
Berkshire announced a profit of $ 4 billion last year, with most of its eclectic activities, including BNSF Railroad, Geico Insurance and several large utilities, having performed well. But this amount was significantly lower than the previous year's $ 45 billion because Berkshire had to write the paper value of many of his shares.
Still, Andy Kilpatrick said the results were better than expected.
"Berkshire's operating business is doing well," said Kilpatrick, a retired stockbroker and writer, who wrote "Permanent Value: The Warren Buffett Story". I am happy to see that we are not talking about retirement.
Berkshire Hathaway Inc. owns more than 90 companies, including railways and clothing, furniture and jewelry companies. Its insurance and utilities activities generally account for more than half of the company's net income. The company also has significant investments in companies such as Apple, American Express, Coca-Cola and Wells Fargo & Co.
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