Buffett opened the letter by acknowledging that he has often made errors through the years with out providing many particular examples, however he assured shareholders that the person he has chosen to someday succeed him as CEO, Greg Abel, is not one among them. He wrote that Abel will probably be able to act each time he spots important funding alternatives.
“We’re neutral in our selection of fairness autos, investing in both selection based mostly upon the place we will greatest deploy your (and my household’s) financial savings. Usually, nothing appears to be like compelling; very sometimes we discover ourselves knee-deep in alternatives. Greg has vividly proven his potential to behave at such instances,” Buffett wrote.
And Abel may have loads of assets to work with provided that Berkshire now holds $334.201 billion money after promoting off a lot of its Apple and Financial institution of America inventory previously yr and persevering with to generate cash from all its subsidiaries that embrace Geico insurance coverage, BNSF railroad, a set of main utilities and an assortment of main producers and well-known retail companies that embrace manufacturers like Dairy Queen and See’s Sweet. That is nearly double the $167.6 billion money Berkshire held a yr in the past.
Buffett did discover a couple of issues to make use of a few of that money on final yr by spending $3.9 billion to accumulate the remainder of its utility enterprise from the property of a former accomplice and one other $2.6 billion to purchase the remainder of the Pilot truck cease chain. Buffett stated he additionally elevated Berkshire’s funding in 5 main Japanese conglomerates. Berkshire has now spent $13.8 billion over the previous six years on these Japanese investments that are actually value $23.5 billion.
However whereas Buffett has struggled to search out main acquisitions lately he affirmed that he has no plans to supply a dividend. In what is perhaps a nod to the 94-year-old Buffett’s age, the legendary investor introduced that this yr’s shareholder assembly in Could that routinely attracts tens of 1000’s of individuals will probably be shorter. Buffett and Berkshire’s two vice chairmen will solely reply questions from 8 a.m. till 1 p.m. – a number of hours lower than traditional. Buffett additionally acknowledged utilizing a cane nowadays to keep away from “falling flat on my face.”
