Warren Buffett, while celebrating the success of his multinational conglomerate Berkshire Hathaway, offered some advice to US President Donald Trump in his annual letter to shareholders on Saturday, February 22. The billionaire investor sent a cautionary message to the US government in his letter to Berkshire Hathaway Inc. shareholders, urging the country to ‘spend wisely’, maintain a stable dollar currency and care for those who get “short straws in life.”
The 94-year-old world’s most famous investor, acknowledged his advanced age in the letter, telling shareholders he now uses a cane and will spend less time fielding their questions at Berkshire Hathaway’s annual meeting in May 2025.
Buffett’s letter was accompanied by Berkshire’s annual report, which reported a third straight record annual operating profit, rising 27 per cent to $47.44 billion. The conglomerate also ended 2024 with a record $334.2 billion of cash and equivalents, reflecting high valuations and aggressive stock sales, especially Apple. Berkshire has been a net seller of equities for nine straight quarters.
Warren Buffett’s letter to shareholders: Here are 10 key highlights
1.Advise to US President Donald Trump: “Paper money can see its value evaporate if fiscal folly prevails,” wrote the Oracle of Omaha in the annual letter. “In some countries, this reckless practice has become habitual, and, in our country’s short history, the US has come close to the edge,” said Buffett advising Trump to ‘spend money wisely’ and maintain a stable US dollar.
2.Berkshire Hathway’s tax payments: On the tax front, Buffett said the company has paid more tax than the American tech giants.“Still operating under the name of Berkshire Hathaway – paid far more in corporate income tax than the US government had ever received from any company. Even the American tech titans that commanded market values in the trillions.”
3.Berkshire’s Japan investment: Buffett said Berkshire is likely to increase its stakes in all five Japanese trading houses it holds: Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo. Berkshire invested $23.5 billion in those companies at year end.
4.Greg Abel to be Berkshire’s new CEO: Warren Buffet assured shareholders they would be in good hands after he turned over the conglomerate’s reins to Vice Chairman Greg Abel, saying Abel has “vividly shown his ability” to deploy capital.
5.Admitted to mistakes: Buffett opened the letter by acknowledging that he has occasionally made mistakes over the years without offering many specific examples. He assured shareholders that the man he has chosen to succeed him as CEO, Greg Abel, is not one of them. He also wrote that Greg Abel will be ready to act whenever he spots significant investment opportunities.
