26 Feb 2024
Berkshire Hathaway’s Warren Buffett said his sprawling conglomerate may only slightly outperform the average American company due to its sheer size and the lack of buying opportunities that could make an impact. “There remain only a handful of companies in this country capable of truly moving the needle at Berkshire, and they have been endlessly picked over by us and by others,” Buffett wrote. “Some we can value; some we can’t. And, if we can, they have to be attractively priced.” Berkshire held a record $167.6 billion in cash in the fourth quarter. Berkshire did build a 9% stake in five Japanese trading companies — Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo, which Buffett intends to own long term. ‘With our present mix of businesses, Berkshire should do a bit better than the average American corporation and, more important, should also operate with materially less risk of permanent loss of capital,” Buffett said. “Anything beyond ‘slightly better,’ though, is wishful thinking.” Berkshire recently hit consecutive record highs, trading above $620,000 for Class A shares and boasting a market value above $900 billion. The conglomerate’s stock has gained about 16% in 2024, more than double the S&P 500′s return, after climbing 16% in all of 2023.
Warren Buffett released Saturday his annual letter to shareholders.
In it, he renders a tribute to his longtime friend and right hand man Charlie Munger, who died late in 2023. He also discusses his outlook for the company.
link : https://lnkd.in/egEj-Pc6
source : cnbc
