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Warren Buffett's annual letter to Berkshire Hathaway shareholders



<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Warren Buffett is a annual letter to Berkshire Hathaway's ( BRK-A BRK-B ) shareholders are out, and this is different this time. Data-response time = "22"> Warren Buffet's annual letter to Berkshire Hathaway's (BRK-A, BRK-B) shareholders are out, and this is different this time.

"Long-term readers of our annual reports have seen otherwise I opened this letter," he said at the top. " For almost three decades, the introductory section was the percentage change in Berkshire's book value per share. It is now time to leave that practice. "

<p class =" canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Buffett said he reported that metric "has lost The relevance it once had. "He pointed out three reasons why: 1)" Berkshire has gradually become morphed from a company whose assets are concentrated in traded shares to one that has great value in operations ", 2)" while our capital stocks are valued at market prices, accounting rules require that our collection of operating companies shall be included in book value with an amount well below their present value, an error mark that has grown in recent years ", and 3) "It is likely that Berkshire will be a major buyer of its shares, transactions that will take place at prices above book value but below our estimate of intrinsic value." "Data response time =" 24 "> Buffett said reporting That metric "has lost the relevance of ance it once had. "He pointed out three reasons why: 1)" Berkshire has gradually morphed from a company whose assets are concentrated in trading shares into one that has great value in operating businesses "; 2)" While our capital stocks are valued at market prices, accounting rules require that our collection of operating companies be included in book value at an amount far below the current value, an error mark that has grown in recent years "; and 3)" it is likely that Berkshire will be a significant buyer of their shares, transactions that will take place at prices above book value but below our estimate of equity. "

On the final question of stock repurchase, Buffett explained:" The math of such purchases is simple: Each The transaction means that the per-share value goes up, while the book value per share decreases. This combination causes the bookmark card to become increasingly in contact with the economic reality. "

The stock purchases have become highly politicized in recent weeks, but it is clear that Buffett will continue to block the noise and continue to focus on what he thinks is best for the company.

<h2 class =" canvas-atom canvas text Mb (1.0em) Mb (0) – Berkshire buys more shares but it is not a market call "data-response time =" 27 "> Berkshire (0.8em) – sm" type = "text" content = " Buying More Shares But It's Not a Market Call

One of the ongoing issues that Berkshire investors have is how will management distribute some of the company's massive $ 112 billion in cash. Earlier, Buffett and Charlie Munger, his right hand and vice-chairman of Berkshire Hathaway featured the elusive goal as an "elephant-great" acquisition.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8 em) – sm "type =" text "content =" Unfortunately, Buffett believes that the market looks expensive [1 9459004]. "data-reactid =" 29 "> Unfortunately, Buffett believes the market looks expensive.

" In the years to come, we hope to move much of our excess liquidity to businesses that Berkshire will permanently own, "he said. for it is not good, however. Prices are high for companies that have decent long-term prospects. "

Not only are the great opportunities elusive, but the return on cash stays unattractive. [19659008]" The disappointing reality means that 2019 will likely see us re-expand our holdings In other words, they are going to buy more shares in the market.

However, this is not Buffet's way of telling the world that investors must necessarily "consider" the stock market because it is a "strong buy". [19659010] "My expectation of more stock purchases is not a market call," he managed. "Charlie and I have no idea how stocks will behave next week or next. Predictions of that kind have never been part of our activities. Rather, our thinking is focused on calculating whether part of an attractive business is worth more than the market price. "

<h2 class =" canvas-atom canvas text Mb (1.0em) Mb (0) – Buffett recognizes multi-billion dollar non-loss on Kraft Heinz "data-response time =" 35 "> Buffett (0.8em) – sm "type =" text "content =" recognizes multi-billion dollar non-cash losses on Kraft Heinz

<p class = "canvas-atom canvas text Mb (1.0em) Mb ( 0) – sm Mt (0.8em) – sm "type =" text "content =" Recently, the Berkshire Hathaway portfolio has had some stumbling blocks. On Friday, Kraft died
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