Berkshire Hathaway (Brk-b. Brk-a) CEO Warren Buffett defended his company's growing cash pile, reflected on mistakes, and touched again with what he called a “American miracle” US economic growth over the last two centuries as the conglomerate marks earnings Operating a record of $ 47.4 billion last year.
Writing in his 2024 Annual Letter For Berkshire shareholders announced on Saturday, Buffett said the highest profit ever came despite more than half (53%) of the company's executive businesses marking a decline in earnings last year.
“In 2024, Berkshire did better than I expected although 53% of our 189 operating businesses identified a decline in earnings,” Buffett wrote. “We were assisted by big predictable earnings in investment income as the Treasury Bill improved and we significantly increased our holdings of these extremely fluid short -term securities.”
At the end of the year, a pile of cash Berkshire and other cash -like securities, such as Treasury Bills, was $ 334.2 billion, almost double the $ 167.6 billion seen at the end of 2023. The Berkshire equity portfolio value was $ 272 billion stands at $ 272 billion at the end of the year; At the end of 2023, these holdings were sold at $ 354 billion.
Berkshire's big sales in Apple (Aapl) During the first, second, and third quarter 2024 the value of his holdings in the technology giant fell by about $ 100 billion.
Berkshire Hathaway Chairman Warren Buffett attends the Berkshire Hathaway Incent Annual Shareholder Meeting in Omaha, Nebraska, US, May 3, 2024. Reuters/Scott Morgan ·Reuters / Reuters
“Despite what some commentators currently consider as a remarkable cash site in Berkshire, the vast majority of your money remains in equity,” Buffett wrote on Saturday. “That option will not change.
“While our ownership is marketable Equity moved down last year from $ 354 billion to $ 272 billion, the value of our non -quoting regulated effects increased and continues far more than the value of the marketable Portfolio.
“Berkshire shareholders can be reassured that we will forever use a significant majority of their money in equity – American equity mainly although many of these will have international operations of significance.”
For the full year 2024, Berkshire's total revenue reached $ 371.4 billion, up from $ 364.5 billion the previous year. Its investment earnings increased $ 41.6 billion, down from $ 58.9 billion in 2023 and reflected how these numbers, to use Buffett words, “rocked wild and unpredictable” year -on -year. The company's $ 47.4 billion operating profit excludes the earnings or losses of its investment portfolio.
Net earnings reported reported by Berkshire including its $ 89 billion investment earnings last year, reported down from $ 96.2 billion in 2023.
At the top of this year's annual letter, Buffett began with reflections on the many mistakes made in Berkshire Hathaway over the years, but kept his comments in general on the advice of the late Tom Murphy: “Praise by name, judging by category.”
“Sometimes I've made mistakes in assessing future business economics I've bought for Berkshire – all in the case of capital allocation gone wrong. That happens with both equity judgments that can be marketed – we regard these as partial Business Ownership – and 100%companies acquisitions.
“At other times, I have made mistakes in assessing the capacity or loyalty of management Berkshire hires. The loyalty disappointments can hurt beyond their financial impact, pain that can go to a failed marriage.”
“During the period 2019-23, I have used the words 'mistake' or 'error' 16 times in my letters to you,” Buffett added. “Many other huge companies have never used either word over that span.”
Buffett added that, given his advanced age, he will not be “long” before Greg Abel takes his place as CEO and writes annual letters to Berkshire shareholders.
“Greg shares Berkshire's belief that 'report' is what the Berkshire CEO is due annually to owners,” Buffett wrote. “And he also understands that if you start to deceive your shareholders, you will believe your own Baloney soon and deceive yourself too.”
Referring to Berkshire's current investments, Buffett also noted some of the “disappointments” that populate that portfolio.
“We don't own anything that drags big,” Buffett wrote, “but we have a number that I shouldn't have bought.”
Buffett, as it has done in recent years, also boasted Berkshire's tax outbreaks and touched the US economic tail which has benefited him and his businesses as an investor and operator.
In this year's letter, Buffett noted that the $ 26.8 billion in taxes paid by Berkshire this year is the largest that any individual company has ever paid to the US government.
“To be precise, Berkshire made last year four payments to the IRS totaling $ 26.8 billion. That's about 5% of what all paid from corporate America,” Buffett wrote.
“In a right Minor way, Berkshire shareholders have participated in the American miracle by preceding dividends, thereby choosing to re -invest rather than eat, “Buffett wrote.
“Originally, this reinvestment was very small, almost meaningless, but over time, it was mushroom, reflecting the mix of continuous culture of savings, along with long-term compound magic.
“Berkshire activities now affect every corner of our country. wise. “
In addition to commentary on Berkshire businesses and other investment topics, a Buffett letter has been closer to the changes at the company's dispersed annual meeting, which is typically held on the first weekend in May.
This year's issue, set for May 3, will include a “slightly changed timetable,” Buffett wrote on Saturday, with the famous Q&A session starting and ending earlier.
Berkshire Vice-Chairs will once again join Buffett by Berkshire-Buffett Vice-Chairs Buffett is evident-and Ajit Jain for two and a half hours starting at 8:00 am after a short break, only Abel will join Buffett On stage, with the stage, with the platform, with the Q&A platform wrapping up by 1:00 pm
In recent years, Buffett's question and answer with shareholders has extended towards 3:00 pm local time; In 2020, the questioning and answer ran far into the night.
