OMAHA, Neb. (AP) — In his annual letter to shareholders, Warren Buffett reflected on the significant achievements of Berkshire Hathaway over the past year and throughout the 60 years since he transformed a struggling New England textile company into a vast conglomerate. Additionally, Buffett offered some advice to President Donald Trump.
Buffett began the letter by admitting to occasional mistakes over the years, although he did not specify any examples. He reassured shareholders about the future leadership of Berkshire Hathaway, emphasizing that Greg Abel, his successor as CEO, is well-prepared to seize significant investment opportunities.
Unlike a decade ago, when Buffett and his longtime investing partner, Charlie Munger, who passed away in 2023, shared separate reflections on the company, Buffett focused less on his tenure in this letter.
Buffett highlighted that Berkshire Hathaway paid no income tax in the decade before his takeover in 1965, labeling the investment a mistake back then. However, as the conglomerate grew, so did its contributions to the IRS, reaching $26.8 billion last year. Buffett noted this as a record payment in corporate income tax, surpassing even American tech giants.
While Buffett typically avoids political commentary, he urged the government to wisely manage the funds it receives from Berkshire. "Thank you, Uncle Sam. Someday your nieces and nephews at Berkshire hope to send you even larger payments than we did in 2024. Spend it wisely," Buffett advised, emphasizing the importance of maintaining a stable currency.
CFRA Research analyst Cathy Seifert remarked, "I thought honestly in a very subtle way that was a powerful message."
Greg Abel will inherit substantial resources, as Berkshire holds $334.201 billion in cash after divesting much of its Apple and Bank of America stock. This is nearly double the $167.6 billion in cash Berkshire held a year ago. The conglomerate continues to generate revenue from subsidiaries such as Geico Insurance, BNSF Railroad, and well-known retail brands like Dairy Queen and See’s Candy.
Buffett utilized some of this cash in the past year, spending $3.9 billion to acquire the remainder of its utility business and $2.6 billion to purchase the rest of the Pilot truck stop chain. He also increased Berkshire’s investment in five major Japanese conglomerates, with a total investment of $13.8 billion over six years now valued at $23.5 billion.
Despite challenges in finding major acquisitions, Buffett affirmed that he has no plans to issue a dividend. In acknowledgment of his age, Buffett announced that the upcoming shareholder meeting in May will be shorter, with Q&A sessions from 8 a.m. to 1 p.m. Buffett also noted his use of a cane to prevent falls.
Berkshire stock, initially purchased by Buffett for $7.60 a share in 1962, has become the world's most expensive shares due to his success and policy against stock splitting. Class A shares closed at $718,750, while more affordable Class B stock is available at $478.74.
Shareholders are promised a special 60th anniversary book filled with untold stories and lessons from Berkshire's history at the annual meeting.
