One of the richest people in the world, Berkshire Hathaway CEO Warren Buffett has published a message to shareholders that he has written annually since 1965. In his letter, the businessman spoke about the $ 11 billion raised from the sale of part of Apple shares by the company, opposed the purchase of bonds and called for investing in shares.
At the beginning of the letter (.pdfBuffett comments on Berkshire Hathaway’s financial performance: In 2020, the company earned $ 42.5 billion, which includes $ 21.9 billion in operating income, $ 4.9 billion in capital gains and $ 26.7 billion in unrealized capital gains in company-owned shares. … The billionaire also complained about a $ 11 billion loss received “from the write-off of the value of several subsidiaries and controlled enterprises.”
Warren Buffett goes on to speculate that Berkshire Hathaway is often referred to as a conglomerate, which is a “negative term” applied to holdings that own a “jumble of unrelated businesses.” According to the businessman, this is only partly true. He notes that he and company vice president Charlie Munger want the Berkshire Hathaway group to have “good economic performance and good management.”
After that, the businessman touches on the topic of investments – in his opinion, “there is no place for bonds now.” He said that the yield on 10-year bonds of the US Treasury for 20 years collapsed by 94%: from 15.8% in 1981 to 0.93% in 2020. “There is a bleak future for fixed-income investors around the world — whether they are pension funds, insurance companies or retirees,” says Buffett.
He spoke more positively about investing in stocks. According to him, “owning shares is a positive-sum game.” “A patient and judicious monkey who has collected a portfolio of (stocks – “B”) by throwing 50 darts at a target that lists companies from the S&P 500, will eventually receive dividends and capital gains, ”says Warren Buffett.
At the end of the letter, he announced the scheduled May 1 Berkshire Hathaway AGM. It will take place for the first time in Los Angeles, whereas before that the event was held in Nebraska, where the company is headquartered.
Ranked by billionaires Bloomberg Billionaires Index Warren Buffett is ranked seventh. His fortune is estimated at $ 92.7 billion.
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