Warren Buffett Celebrates Berkshire Hathaway's 60-Year Success, Acknowledges Mistakes
In his annual letter to shareholders, Warren Buffett celebrated the remarkable success of Berkshire Hathaway over the past year and the six decades since he transformed a struggling textile company into a massive conglomerate. Buffett reflected on his tenure while also looking ahead to the future leadership of the company.
Succession and Leadership
Buffett acknowledged making occasional mistakes throughout his career but reassured shareholders that his chosen successor, Greg Abel, is well-prepared to seize investment opportunities. He emphasized Abel's ability to act decisively when compelling opportunities arise.
Financial Strength
Berkshire Hathaway boasts an impressive $334.201 billion in cash, driven by selling off significant portions of its Apple and Bank of America stock and continuous revenue generation from its diverse subsidiaries, including Geico insurance, BNSF railroad, major utilities, and well-known retail brands like Dairy Queen and See's Candy. This cash reserve is almost double the $167.6 billion held a year ago.
Recent Investments
Buffett deployed some of this cash last year by:
- Spending $3.9 billion to acquire the remaining portion of its utility business.
- Investing $2.6 billion to purchase the rest of the Pilot truck stop chain.
- Increasing Berkshire's investment in five major Japanese conglomerates.
Berkshire's investments in these Japanese conglomerates now total $13.8 billion over the past six years and are currently valued at $23.5 billion.
No Dividends Planned
Despite the significant cash reserves and difficulty in finding major acquisitions, Buffett reaffirmed that Berkshire Hathaway has no plans to offer a dividend.
Shareholder Meeting Changes
Acknowledging his age, Buffett announced that this year's shareholder meeting in May, which typically attracts tens of thousands of attendees, will be shorter. The question-and-answer session with Buffett and Berkshire's two vice chairmen will be reduced by several hours.
Buffett also mentioned his increased reliance on a cane to prevent falls.
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