Buffet Is Still Bullish

Sebastien Callebaut -

Warren Buffett Remains Bullish on U.S. Economy in Annual Letter to Berkshire Shareholders

Billionaire investor Warren Buffett has expressed unwavering confidence in the U.S. economy and his company, Berkshire Hathaway, in his annual letter to shareholders released on Saturday. Despite higher inflation and other factors that weighed down stock prices in 2022, Buffett encouraged investors to focus on the big picture over the long term.

  • He also urged Americans not to be swayed by "self-criticism and self-doubt," emphasizing the country's dynamism
  • The letter was accompanied by Berkshire's year-end results, which included a record $30.8 billion operating profit. While the company posted a $22.8 billion annual net loss due to declining stock prices

Buffett downplayed net results because they are volatile and affected by accounting rules. Berkshire owns numerous operating businesses and well-known consumer brands, employing over 382,000 people.

Buffett Urges Long-Term Focus, Defends Buybacks in Annual Letter to Shareholders

Overall, it appears that Buffet struck a humble tone in his latest annual letter to shareholders, acknowledging his struggles in navigating markets. Despite his $106 billion net worth and a track record of delivering gains to investors for decades, Buffett expressed caution and said most of his capital allocation decisions have been only "so-so." He also criticized those who suggest that all buybacks are harmful to shareholders, calling them "economic illiterates or silver-tongued demagogues".

  • Berkshire Hathaway, the conglomerate Buffett has run for over half a century, ended the year with $128.6 billion of cash, after becoming a big seller of stocks late in the year
  • The 92-year-old investor also reaffirmed his confidence in Vice Chairman Greg Abel, who is slated to succeed him as CEO, while renewing his admiration for his longtime business partner Charlie Munger, who is 99

Disclaimer

Please note that this article does not constitute investment advice in any form. This article is not a research report and is not intended to serve as the basis for any investment decision. All investments involve risk and the past performance of a security or financial product does not guarantee future returns. Investors have to conduct their own research before conducting any transaction. There is always the risk of losing parts or all of your money when you invest in securities or other financial products. Please note that the writer of this article is not registered as a financial advisor.

Credits

Photo by Steven Abraham on Unsplash.