Warren Buffett in an annual letter notes that more share buybacks will take place this year, says do not ‘bet against the United States’
Warren Buffett, in his annual letter to shareholders, offered words of encouragement to a battered country and also noted that more share buybacks are to come. Buffett Annual Letter: The 90-year letter from the CEO of Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) was even more anticipated than usual this year, because his influential voice has been in silence since his last letter, which came in the early days of the pandemic. Much has happened since then, from the controversial election and the ensuing fallout, to the arrival of retail investors pushing “stonks,” not to mention the meteoric rise of Bitcoin (CRYPTO: BTC). Buffett’s deputy, Berkshire Hathaway Vice President Charlie Munger, spoke on some of these issues Wednesday. He said that trading stocks like GameStop Corp. (NYSE: GME) amounted to “betting on racehorses” and cast doubt on the idea that Bitcoin will ever replace regular money as the world’s primary medium of exchange. Buffett in his letter did not speak about cryptocurrencies or GameStop, but he did mention the turmoil of the past year, without making direct reference to any particular event. He used the stories of companies across the country in which he has invested, such as GEICO and Pilot Travel Centers, to convey a simple and clear message: “Never bet against America.” (Italics in original.) “There has not been an incubator to unleash human potential like the United States. Despite some severe disruptions, our country’s economic progress has been impressive,” he wrote. “Beyond that, we maintain our constitutional aspiration to become ‘a more perfect union.’ Progress on that front has been slow, uneven, and often discouraging. However, we have moved forward and will continue to do so. “Earnings, share buybacks: Looking at the latest figures on the company’s performance, the letter showed that Berkshire earned $ 42.5 billion last year, down 48% from $ 81.400 $ 11 billion in 2019. This included a $ 11 billion write-off loss in subsidiary and affiliate businesses, particularly the 2016 purchase of Portland, Ore.-based metals maker Precision Castparts. The company does business in the industry. Aerospace, not the best in the past year. In his letter, Buffett said he overpaid for the company and that last year’s “adverse developments” in the industry made that clear. “He was simply too optimistic about the potential of normalized earnings of PCC, “Buffett wrote. The company spent $ 24.7 billion to buy back the equivalent of 80,998” A “shares last year, including $ 9 billion in the fourth quarter. E That’s likely to continue: “Berkshire has bought back more shares since the end of the year and is likely to lower its share count further in the future,” Buffett wrote. Berkshire also, as usual, listed its top holdings by market value. Among them were Apple Inc (NASDAQ: AAPL), Coca-Cola Co (NYSE: KO), American Express Company (NYSE: AXP) and Bank of America Corp (NYSE: BAC). Berkshire filings earlier this month showed the company slashing its positions at Apple as it accumulated in pharmaceutical, telecom and oil companies in the last quarter. Recent Price Action: Berkshire’s class B shares ended Friday at $ 240.51, a drop for the week by 0.54%. Class A shares were down 0.88% to $ 364,580. Photo courtesy of Wikimedia Commons. See more from Benzinga Click here to see Benzinga options trading Bitcoin hits another all-time high of 30,000 Macs infected with a recently detected form of malware dubbed ‘Silver Sparrow’ © 2021 Benzinga.com. Benzinga does not offer investment advice. All rights reserved.