In his annual letter to shareholders, Warren Buffett highlighted the achievements of Berkshire Hathaway over the past year and throughout the 60 years since he took charge of what was once a struggling New England textile company, transforming it into a major conglomerate.
Buffett began the letter by admitting to occasional mistakes during his tenure, though he did not specify any examples. He reassured shareholders about his chosen successor, Greg Abel, as CEO, emphasizing Abel’s readiness to identify and seize notable investment opportunities. Buffett affirmed Abel’s ability to act decisively when such opportunities arise.
Buffett also noted that Berkshire Hathaway now possesses $334.201 billion in cash, having sold much of its Apple and Bank of America stock over the previous year. The conglomerate continues to generate substantial revenue from its diverse portfolio, which includes companies like Geico insurance, BNSF railroad, several utilities, and well-known retail brands such as Dairy Queen and See’s Candy. This cash reserve nearly doubles the $167.6 billion it held a year earlier.
Last year, Berkshire utilized some of its cash reserves by spending $3.9 billion to acquire the remaining portion of its utility business from the estate of a former partner and $2.6 billion to fully purchase the Pilot truck stop chain. Additionally, Buffett increased Berkshire’s stake in five major Japanese conglomerates. Over the past six years, Berkshire has invested $13.8 billion in these Japanese companies, which are now valued at $23.5 billion.
Despite challenges in finding significant acquisitions recently, Buffett reiterated that there are no plans to issue a dividend. Perhaps acknowledging his 94-year-old age, Buffett announced that this year’s shareholder meeting in May will be shorter than usual. Buffett, along with Berkshire’s two vice chairmen, will respond to questions from 8 a.m. to 1 p.m., several hours less than previous meetings. He also mentioned his use of a cane to prevent falling.