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The coronavirus pandemic has not dampened Warren Buffett’s enthusiasm for the future of America and his business, Berkshire Hathaway.
Buffett used his annual address to investors to reassure them that he and his successors would take care of their money in Berkshire, capitalizing on “the passage of time” and what he said was “the inner calm”.
“Dark future” With these words, Buffett warned bond investors as their prices fell to low levels last week.
Buffett said that investment funds tended to buy debt from poorly rated companies in the hope of a higher yield, after the yield on government bonds in Europe and Japan turned negative. Berkshire Hathaway reduced its holdings of corporate bonds slightly in the last quarter of the year.
Despite losing 31,000 jobs at Berkshire last year, Buffett hasn’t quashed his known optimism and bought back $ 24.7 billion in shares in 2020, a sign he thinks the price is undervalued , according to Reuters.
He praised the economy’s ability to withstand “severe disruption” and make “amazing” progress. He wrote: “The decisive conclusion we have come to is this: never bet against America.”
“He has a deep faith in his company and in America,” said Tom Russo, partner of Gardner, Russo and Gardner in Lancaster, Pa., And longtime investor in Berkshire.
The speech broke an unusual silence from Buffett, 90, who had not appeared in public since the Berkshire annual meeting in May.
The speech touched on the usual themes, such as bankers’ greed to charge fees for transactions that benefit them more than the companies they represent, but it did not address the pandemic, a major contributor to business losses. jobs in Berkshire.
He did not address recent social issues or the climate of political division that other businesses face more directly now.
Buffett indicated a long-standing commitment to Apple, as Berkshire sealed 2020 with $ 120.4 billion in equity, despite a recent sale of billions of dollars in shares.
Berkshire reported fourth quarter net income of $ 35.84 billion and $ 42.52 billion for the full year on Saturday, thanks to sizable dividends.
Operating profit, which Buffett saw as a more accurate measure of performance, fell 9% on the year to $ 21.92 billion.
Share buybacks continued in 2021, with the company repurchasing more than $ 4 billion of its shares. It closed 2020 with liquidity of $ 138.8 billion.
Berkshire, headquartered in Omaha, Nebraska, has more than 90 work units, and last year its workforce was down 8%, bringing the number of workers to around 360,000.
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