Bloomberg
Buffett’s Berkshire records a record $ 24.7 billion in equity
(Bloomberg) – Warren Buffett’s Berkshire Hathaway Inc. last year repurchased a record $ 24.7 billion of its own stock and said it was yet to come as the conglomerate struggled to find other ways to use its huge pile of cash. Buffett equaled a $ 9 billion record set in the previous three-month period on Saturday in its fourth quarter. “Berkshire has bought back more shares since the end of the year and will probably reduce the number of shares further. in the future, ”Buffett, 90, said in the letter. “That action increased your ownership in all of Berkshire’s businesses by 5.2%, without you having to touch as much as your wallet.” Buffett’s letter, a meticulous mission from one of the world’s most famous investors, devoted large parts to the impact of buybacks, one of Berkshire’s largest capital deployment movements last year because it ‘did not make any significant acquisitions’. He also shared his thoughts on the strategy of conglomerates and praised businesses such as Berkshire’s insurance operations and railways. But Buffett expressed his optimism for America, saying that progress toward achieving a “more perfect union” was unequal, but that he was still moving forward. “Our unwavering conclusion: Never bet against America,” he said. the cash stack, which fell 5% to $ 138.3 billion in the fourth quarter. Buffett has struggled to keep up with the flow over the past few years as Berkshire threw away cash faster than he could get higher-yielding assets to accelerate. Apple Inc. is one of Berkshire’s top three most valuable assets, at $ 120 billion, Buffett said. . The technology company said it also plans to buy back its own shares. “The math of repurchase grinds away slowly, but can be powerful over time,” Buffett said. “The process provides a simple way for investors to own a growing share of extraordinary businesses.” Buffett separately admitted that the $ 11 billion Berkshire delegate last year was almost entirely due to what he admitted was a “mistake” in 2016, when he paid too much for Precision Castparts. Precision is a good company, Buffett said, but he admitted he made a big mistake. ‘However, I was wrong in judging the average amount of future earnings and consequently wrong in my calculation of the right price to pay for the business. , ”Buffett said in the letter. Stock PortfolioSwings in Berkshire’s massive $ 281.2 billion equity portfolio imports the company’s net income due to a technical technology. This increased the figure in the fourth quarter by 23% from a year earlier by 23% to $ 35.8 billion. Berkshire’s A shares rose about 2.4% last year, which did not have the S&P 500 increase of 16%. The billionaire has only touched on the biggest questions that threaten Berkshire in just a short time – how long he might stay at the helm. He again refers to a favorite CEO, Mrs. Blumkin, who founded Nebraska Furniture Mart. She worked until she was 103 – a ridiculously premature retirement age as judged by Charlie and I ‘, Buffett wrote, referring to Charlie Munger (97), a Berkshire vice-president. Visit us at bloomberg.com for more articles like this. now to stay ahead of the most trusted business news source. © 2021 Bloomberg LP