Warren Buffett Letters to Berkshire Shareholders

Prominent investor and billionaire Warren Buffett annually releases an annual report in which he details business-related news that he would like to share with the public. The annual Warren Buffett letters focus on the activities of the last 12 months. The letters are normally written to the shareholders of the company he leads known as Berkshire Hathaway Inc.

For his followers, he has delivered top-quality advice on various issues surrounding investment. In the 2018 annual letter, he has revealed a lot of important information to the shareholders. The 87 years old CEO revealed that Berkshire Hathaway has over $116 billion to spend now that it has stayed out of any major investment last year.

In this year’s report, he has even gone to an extent of using a poem by Rudyard Kipling to give an investing lesson to his followers. Warren Buffett has revealed to the shareholders that in 2017, the company gained $65.3 billion. However, out of all this gain, only $36 billion came from their operations. The rest, $29 billion was handed to them by the US Congress after the tax laws were amended.

In 2017, he reveals the company did not make any major investments because there were no good deals out of all the deals they reviewed last year. The commitment of the company is to invest in high-value investments that come at a reasonable purchase price. Warren Buffett said that there were good opportunities but the purchase prices were all-time high making the investments not viable.

Another thing that was contained in Warren Buffett letter was that Berkshire lost $3 billion following the hurricanes that hit the United States last year. The company looks to make one major acquisition so as to boost their earning with the amount of money available for investment the company will comfortably make an investment when a good investment opportunity arises.

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