Warren Buffett offers lessons on investing in his annual Berkshire Hathaway letter

Omaha, Neb. (AP) – The billionaire Warren Buffett is considered one of the largest investors in the world, so his Annual letters At Berkshire Hathaway, shareholders are still read closely for lessons.

Buffett no longer ventures much in the current politics or events in his letters, so he will not offend anyone who could withdraw it from his many companies, especially well -known like Geico Insurance, Dairy Queen and Helzberg Jewelry.

But buffett last letter According to Saturday offers investment information and a few lessons for his six decades at the head of Berkshire. Here is a sample:

On what the American government should do:

“Thank you, my uncle Sam. One day, your nieces and nephews in Berkshire hope to send you even more important payments than in 2024. Take care of the many who, without fault on their part, obtain the short straws in life. They deserve better. And never forget that we need you to maintain a stable currency and this result requires both wisdom and vigilance on your part. “”

___

On the future of the well -read annual report of Berkshire:

“At 94, it will not take long before Greg Abel replaces me as CEO and wrote the annual letters. Greg shares Berkshire Creed that a “report” is that a CEO of Berkshire owes owners each year. And he also understands that if you are starting to deceive your shareholders, you will soon believe your own balust and you are also mistaken. “”

___

On the fault of errors over the years:

“Of course, I expect to make my share of errors on the companies that Berkshire buys and sometimes to assess the kind of person with whom I take care.

“But I also had many pleasant surprises both in the potential of the company as well as in the capacity and loyalty of the manager. And our experience is only one winning decision can make a breathtaking difference Over time.

“The errors disappear; Winners can always flourish. »»

___

On what Buffett is based on profit:

“Companies, as well as people with desired talents, will generally find a way to deal with monetary instability as long as their goods or services are desired by the country’s citizens. So also, with personal skills. Missing such active ingredients such as athletic excellence, a wonderful voice, medical or legal skills or, moreover, special talents, I had to count on actions throughout my life. Indeed, I depended on the success of American companies and I will continue to do so. »»

___

On Berkshire’s investments in the acquisition of entire companies against investment in stocks:

“Naturally, truly exceptional companies are very rarely offered in their entirety, but small fractions of these jewels can be bought Monday to Friday at Wall Street and, very occasionally, they sell at negotiation prices.

“We are impartial in our choice of equity vehicles, investing in one or the other variety depending on where we can best deploy your savings (and my family). Often, nothing seems convincing; We are very rarely to the knees in opportunities. Greg clearly showed his ability to act at these moments. »»

___

On the prosperity of America:

“The progress of our country during its 235 years of existence could not have been imagined even by the most optimistic colonists in 1789, when the Constitution was adopted and that the country’s energies were raised.

“Admittedly, our country with its stammerings sometimes borrowed abroad to complete our own economies. But, simultaneously, we needed many Americans to save regularly, then needed these savers or other Americans to wisely deploy the capital thus made available.

“The American process has not always been pretty – our country has forever had many scoundrels and promoters who seek to take advantage of those who wrongly trust their savings. But even with such embezzlement – which remains in Force today – and also many deployment of capital that has finally trained due to brutal competition or disruptive innovation, the savings of the Americans provided a quantity and a quality of production beyond dreams of everything colon.

“A base of only four million people – and despite an internal brutal war from the start, opposing an American to another – America changed the world in the blink of an eye with a celestial eye.”

___

On the cash flow of 334.2 billion dollars in Berkshire: of 334.2 billion dollars:

“Despite what certain commentators currently consider as an extraordinary cash position in Berkshire, the vast majority of your money remain in actions. This preference will not change.

“While our property in marketable shares dropped down last year from $ 354 billion to $ 272 billion, the value of our unqualified controlled shares has increased somewhat and remains much higher than the value of the portfolio marketable.

“Berkshire shareholders can be assured that we will forever deploy a substantial majority of their money in actions – mainly American actions, although many of them will have importance of importance. Berkshire will never prefer the property of cash assets on the property of good companies, whether controlled or only partially held.

“The paper money can see its value evaporate if the budgetary madness prevails. In some countries, this reckless practice has become usual and, in the short history of our country, the United States has approached the tip. The fixed coupon bonds offer no protection against the leakage currency. »»