The Coronavirus pandemic has not dampened Warren Buffett’s enthusiasm for the future of America and his company, Berkshire Hathaway.
Buffett took advantage of his annual speech to investors to reassure them that he and his successors would take care of their money in Berkshire, capitalizing on “the passage of time” and what he said was “inner calm.”
“Bleak future” With these words, Buffett warned investors in bonds as their prices fell to low levels last week.
Buffett said that investment funds tended to buy debts of low-rated companies in the hope of a higher return. This came after the yield on government bonds in Europe and Japan reached negative. Berkshire Hathaway cut its corporate bond holdings slightly in the last quarter of the year.
Despite losing 31,000 jobs at Berkshire last year, Buffett did not undo his known optimism, buying back $ 24.7 billion worth of shares in 2020 in an indication that he believes the price is undervalued, according to Reuters.
He praised the economy’s ability to withstand “severe disruptions” and make “amazing” progress. He wrote, “The decisive conclusion we have reached is: Never bet against America.”
“He has deep confidence in his company and in America,” said partner at Gardner, Russo and Gardner in Lancaster, Pennsylvania, and longtime investor in Berkshire, Tom Russo.
The speech broke an unusual silence from Buffett, 90, who had not appeared in public since the Berkshire annual meeting in May.
The speech addressed the usual themes, such as bankers’ greed to charge fees for deals that benefit them more than the companies they represent, but it did not address the pandemic, a major factor behind job losses in Berkshire.
It did not address recent social problems or the climate of political division that other companies are dealing with more directly now.
Buffett indicated a long-standing commitment to Apple, as Berkshire sealed 2020 with $ 120.4 billion in equity, despite a recent sale of billions of dollars in shares.
On Saturday, Berkshire reported a net profit of $ 35.84 billion in the fourth quarter, and $ 42.52 billion for the full year, thanks to a large equity gain.
Operating income, which Buffett saw as a more accurate measure of performance, fell 9% over the year to $ 21.92 billion.
The share buybacks continued into 2021, as the company repurchased more than $ 4 billion of its shares. It concluded 2020 with a liquidity of $ 138.8 billion.
Berkshire, which is headquartered in Omaha, Nebraska, has more than 90 working units, and last year its workforce declined 8%, bringing the number of workers to about 360,000.
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