Warren Buffett's Annual Letter Highlights Fiscal Caution and Berkshire's Continued Equity Focus
In his annual letter to Berkshire Hathaway shareholders, Warren Buffett emphasizes the importance of fiscal responsibility and social justice.
Fiscal Concerns and Currency Stability
Buffett warns against "fiscal folly," which can erode the value of paper money. He highlights the potential risks to the U.S. government's stability and urges policymakers to prioritize maintaining a sound currency.
Buffett's Age and Transition
Acknowledging his advanced age, Buffett assures shareholders that Berkshire Hathaway is in capable hands. He praises Vice Chairman Greg Abel's leadership and ability to allocate capital effectively.
Financial Performance and Investment Strategy
Berkshire Hathaway reports a record annual operating profit of $47.44 billion, a 27% increase. The company ended 2024 with a record $334.2 billion in cash and equivalents. Despite fiscal concerns, Buffett maintains Berkshire's preference for equity investments over cash.
Japanese Trading Houses and Other Investments
Buffett indicates plans to increase Berkshire's stakes in Japanese trading houses Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo. He expresses frustration with limited buying opportunities due to elevated stock valuations.
Annual Meeting Updates
This year's annual meeting in Omaha, Nebraska, will be shorter and omit its traditional film presentation. Buffett is expected to provide further insights into Berkshire's outlook and strategy on May 3.
Personal Reflections
Buffett shares anecdotes about his daily conversations with his sister Bertie, discussing the joys and realities of aging. He emphasizes the importance of gratitude and preparing for the future.