3 Key Takeaways from Warren Buffett’s Annual Letter to Berkshire Hathaway Shareholders | Global News Avenue

Warren Buffettbrk.a) (bk.b) Shareholders fell on Saturday, more than expected Fourth quarter results.

Below, we look at some of the key points of Buffett’s letter.

Berkshire sells stocks, but will always be fair

Berkshire Hathaway’s total cash, equal to the same amount of cash as the U.S. Treasury shares, was $34.2 billion at the end of the year, and its $163.3 billion reserves were a year-end. More than twice.

Buffett assured investors Saturday that despite Berkshire’s cash accumulation, the “overwhelming majority” they invest in is stocks, not cash.

Berkshire was net price last year, buying $9.2 billion in stock and selling more than $143 billion. But, Buffett explains, the value of Berkshire’s non-marketed securities (i.e., companies that are not publicly traded, including Berkshire (Berkshire) Distant Greater than Can be sold Folder. ” (emphasized by Buffett.)

Buffett insists that Berkshire will always own businesses and take priority over cash. “If fiscal stupidity prevails, paper money can see its value evaporate,” he wrote. “Businesses, as well as individuals with the required talents, often find ways to cope with currency instability.”

Buffett warns Shareholder letter last year This investment opportunity fits Berkshire’s philosophy – buying a good business at a reasonable price and is far apart. But the company did find some goals last quarter. Berkshire A new position opened In the Modelo Maker zodiac brand (STZ) and increased its stake in domino pizza (DPZ), Occupy Oil (oxygen) and pool company (pool) in the fourth quarter.

Berkshire holds Japanese investment for a long time

The vast majority of Berkshire’s investments are in U.S. companies, but last year the company added stakes in five Japanese companies similar to Berkshire. Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo are large conglomerates that own stakes in a variety of businesses around the world.

Buffett praised the businesses in his letter Saturday, writing cautiously that they use capital and fair methods of administrative compensation. “We have a long-term holding on to these five, we are Firm Buffett wrote: “Before support for Berkshire may increase investment in the company, Buffett wrote.

The investment Berkshire started in July 2019 is a good choice. Berkshire’s initial $13.8 billion investment was worth $23.5 billion at the end of the year.

“Error – Yes, we make them”

According to Buffett, today’s Berkshire Hathaway is wrong. Shortly after Buffett bought Berkshire in 1965, his long-time business partner, Charlie Munger, immediately discovered my obvious mistake: despite the price I paid for Berkshire look Cheap, its business – a large northern textile operation – is heading for extinction. ”

The balance between small mistakes and big victory is a recurring theme of Buffett’s letter. “one Single “Winning decisions can have a breathtaking impact over time,” he wrote, citing the example of a partnership with Munger. Winners can blossom forever. “He called on his large amount of lucrative investments in long-term holdings like Coca-Cola (That) and American Express (AXP).

Last year, insurance was Berkshire’s biggest winner. Geico reported that underwriting revenue exceeded $7.8 billion in 2024, up from $3.6 billion in 2023 and a loss of $19.2 billion in 2022. Buffett noted that insurance revenues have soared, offsetting weaknesses elsewhere. Last year, half of Berkshire’s 189 subsidiaries saw revenue drop, “some rare gems, many good but clumsy businesses and some disappointing laggards”.

Buffett suggests that having mistakes is his confident Berkshire tradition Greg Alberhe was appointed CEO successor Will insisted. Abel “knows that if you start cheating shareholders, you will soon believe your Boloney and fool yourself,” he wrote.