Warren Buffett urges investors to ignore Wall Street pundits in annual letter

OMAHA, Nebraska — Warren Buffett praised his longtime partner, the late Charlie Munger, as the architect of the Berkshire Hathaway conglomerate, offering guidance and warning to shareholders. He praised his achievements. annual letter Don’t listen to Wall Street experts and financial advisors who advise you to trade more often on Saturdays.

Buffett said he always writes letters with smart long-term investors like his sister Bertie in mind and tries to tell them what they want to know about Berkshire.

“She is sensible, very sensible, and instinctively knows that experts should always be ignored,” Buffett wrote of Barty. “After all, if she could reliably predict tomorrow’s winners, wouldn’t she freely share her valuable insights and thereby increase competitive purchasing? It’s like giving a map to your neighbor.”

Warren Buffett praised the late Charlie Munger as the architect of Berkshire Hathaway.

Buffett told investors that Berkshire is a safe place to put their money, as long as they don’t expect “spectacular performance” in the past. The Omaha, Nebraska-based company’s performance. But he said Berkshire is ready to swoop in with its $167.6 billion every time a stock market like casinos is seized.

Munger, Buffett’s longtime investment partner, died in november At 99 years old — Buffett spent decades reorganizing the struggling textile mills he inherited in the 1960s into a large, eclectic enterprise, with Berkshire acquiring companies such as See’s Candy, Geico Insurance, and BNSF Railway. It took away one of the important opinion boards that I had relied on for so long. The conglomerate Berkshire is today.

Buffett has already spent some of last year’s investments annual letter While Berkshire shareholders expressed their condolences to Munger, this year’s edition began with a further celebration of the esteemed songwriter’s contributions to Berkshire over the years. “Charlie was the ‘architect’ of what Berkshire is today, realizing early on that it was better to buy great companies at fair prices,” Buffett said.

“Charlie never tried to take credit for his role as creator, but instead he let me take a bow and take the credit,” Buffett wrote. “In a way, his relationship with me was that of an older brother and a loving father. Even when he knew he was right, he would hand over the reins to me, and even when I messed up, he would never, ever… It didn’t remind me of my mistake.”

warren buffett
Warren Buffett told investors to ignore Wall Street experts. Reuters

Buffett also talked about how Berkshire’s insurance businesses like Geico grew last year, but its large utilities and BNSF Railway disappointed. He also told shareholders that he never intended to sell his roughly 30% stake in Occidental Petroleum and 9% stake in five major Japanese trading companies, but that he had no plans to buy oil producers outright. repeated.

Berkshire’s eclectic mix of businesses, combined with strong investment performance, resulted in fourth-quarter earnings of $37.57 billion, or $26,043 per Class A share. That’s more than double the $18.08 billion in profits Berkshire reported a year ago, or $12,355 per Class A share.

But Buffett cautioned that investors should largely ignore these bottom-line numbers because they are largely influenced by the paper value of their investments. Instead, he has long urged investors to focus on Berkshire’s operating income, which excludes investments.



Sign up to stay informed to breaking news