BRK-B, BRK-A), Warren Buffett, CEO of his growing monetary company, reflected on errors, and once again reached what he called the “American Miracle” of American economic growth over the past two centuries, where the group reported operating profits. It is $ 47.4 billion last year.
Writing in him 2024 annual messages To Berkshire's shareholders published on Saturday, Buffett said that these record profits came despite more than half (53 %) of the company's operating companies that reported a decrease in profits last year.
“In 2024, Berkshire was better than I expected, although 53 % of the 189 -year -old operating companies reported a decrease in profits.” “We have helped gain great gains that are predicted in investment income with the improvement of the revenues of the Ministry of Treasury, and we have increased our property significantly from these short -term securities.”
At the end of the year, the Berkshire pile of cash and other cash -like securities, such as Treasury bills, amounted to 334.2 billion dollars, or approximately $ 167.6 billion seen at the end of 2023. The value of the property rights portfolio in Berkshire remained $ 272 billion at the end. General; At the end of 2023, the value of these holdings reached 354 billion dollars.
The main sales of the Berkshire theft in Apple (AAPL) during the first, second and third quarter of 2024 witnessed the value of its holders in the decline in the technological giant by about $ 100 billion.
The Chairman of the Board of Berkshire Hathaway Warren Buffett attends the annual shareholders meeting in Berkshire Hathaway in Omaha, Nebraska, May 3, 2024. Reuters/Scott Morgan ·Reuters / Reuters
“Despite what some commentators currently consider an extraordinary cash position in Berkshire, the vast majority of your money is still in stocks,” Pavit wrote on Saturday. “This preference will not change.
“While our ownership is in Marketable The stocks moved below last year from 354 billion dollars to 272 billion dollars, and the value of the shares is somewhat controlled and remained far Greater Marketable file.
“Berkshire shareholders can reassure us that we will forever spread a large majority of their money in stocks – most of them are from American stocks, although many of these international operations are of importance.”
For 2024, Berkshire's total revenue reached 371.4 billion dollars, an increase of 364.5 billion dollars in the previous year. Investment gains amounted to $ 41.6 billion, a decrease from 58.9 billion dollars in 2023 and reflects how these numbers can use Pavite's words, “swing violently and unexpectedly” from year to year. The profits of the operating company, which cost $ 47.4 billion, exclude gains or losses in the investment portfolio.
Berkshire's net profit, including investment gains, mentioned 89 billion dollars last year, a decrease of $ 96.2 billion in 2023.
At the top of the annual message for this year, Buffett began reflections on many of the mistakes made in Berkchire Hathaway over the years, but he kept his comments in general on the advice of the late Tom Murphy: “Praise by name, criticizes the category.”
“Sometimes I made mistakes in assessing the future economy of one of the works that I bought for Berkshire – every case of the issue of allocating capital has occurred incorrectly. This happens with both rulings about marketable stocks – and we look at it as partial Corporate ownership – 100 % consequences for companies.
“At other times, errors were made when assessing the capabilities or loyalty of the managers that Berkshire hires.
“During the 2019-23 period, I used the words” error “or” error “16 times in my messages to you. “Many other huge companies have not used any of the word for that period.”
Buffett added that, given his advanced age, “he will not be long” before Greg Abel took his place as an executive president and writes annual messages to Berkshire shareholders.
Buffett wrote: “Greg is the Berkshire doctrine that” a report “is what Berkshire CEO owes annually to the owners,” Buffett wrote. “He also realizes that if you start deceiving the shareholders, you will soon be honest and deceived yourself.”
Referring to the current Berkshire investments, Buffett also noticed some “disappointments” that fill this wallet.
“We do not have anything big, but we have a number that I should not buy,” Buffett wrote.
Puffett, as he did in recent years, also boasted about Berkshire's tax expenses and reached the American economic winds that benefited from him and his business as an investor and operator.
In this year's speech, Buffett noted that the taxes paid by Berkshire worth $ 26.8 billion this year are the most individual company to the US government.
“On the occasion of accuracy, Berkshire last year made four payments for the tax department, a total of $ 26.8 billion. This is about 5 % of what all American companies paid.”
“in very Buffett wrote that Berkshire shareholders participated in the American miracle through the profits offered, thus choosing a re -investment instead of consumption.
“Originally, this re -investment was small, almost meaningless, but over time, it reflects a mixture of sustainable savings culture, along with the charm of the long -term compound.
“Berkshire's activities now affect all angles of our country. We have never finished … one day, your sisters and your brother in Berkshire hope to send more payments than we did in 2024. Spend it wisely.”
In addition to commenting on Berkshire companies and other investment topics, Pavite's speech has become closely monitored for changes at the sprawling annual meeting of the company, which is usually held at the first weekend in May.
Buffett wrote on Saturday, which was appointed on May 3, will show a “somewhat changed schedule”, with the start of the famous question and answers session early.
Puffett will be joined again by the Vice President of Berkshire Greg Abel-Othr Buffett-Ajit Jain for two and a half hours starting at 8:00 am after a short break, Abel will only join Buffett on the stage, with a session of questions and answers concluded by 1:00 pm: 00 pm
In the past years, questions and answers in Buffett have spanned the shareholders around 3:00 pm local time; In 2020, he ran a question and answer at night.
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