Warren Buffett's Letter to Shareholders: Highlights and Key Takeaways
Success and Stability:
Warren Buffett's annual letter celebrated the triumphs of Berkshire Hathaway's businesses over the past year and six decades. He acknowledged his occasional mistakes, but emphasized confidence in Greg Abel, his chosen successor.
Tax Contribution:
Buffett highlighted Berkshire's growing tax contributions, from zero in 1965 to $26.8 billion in 2024. He urged the government to use these funds responsibly, prioritizing those in need and maintaining currency stability.
Cash Reserves and Acquisitions:
Berkshire currently holds a massive cash reserve of $334.201 billion. In 2024, Buffett acquired the remaining stake in its utility business and Pilot truck stop chain. He also increased investments in Japanese conglomerates, bringing the total to $13.8 billion.
Future Investments:
Buffett emphasized his focus on finding significant investment opportunities. Despite limited major acquisitions in recent years, he reiterated his opposition to dividends.
Dividends:
Shareholder Meeting:
The annual shareholder meeting in May will be shortened, with question-and-answer sessions lasting from 8 a.m. to 1 p.m.
Stock Performance and Future Outlook:
Buffett began acquiring Berkshire stock in 1962 for $7.60 per share. Despite its high cost, Class A shares remain highly valuable, closing at $718,750 on Friday. However, the company offers a more affordable Class B stock at $478.74.
Special Anniversary Book:
Shareholders will have the opportunity to purchase a special 60th anniversary book, featuring untold stories and insights into Berkshire Hathaway's history.