NEW DELHI: The much awaited Warren Buffett’s annual letter to Berkshire Hathaway shareholders finally arrived on Saturday, giving a glimpse into the year gone by struggles, achievement and missed opportunities.
Buffett reiterated his trust in America to create miracles day in and day out, despite reeling under a mismanaged pandemic. He recounted the power of repurchases in creating wealth and also outlined why high capex businesses will eventually pay rewards, though that may take some time.
Here are 10 key takeaways from Warren Buffet s letter:
1) A big mistake: Buffett accepted that his purchase of aircraft component maker Precision Castparts in 2016 was a “big” mistake. Berkshire Hathaway wrote off $10 billion of the investment. Buffett accepted that he miscalculated its future earnings and paid more than its worth.
With 2 Sentences, Warren Buffett Just Shared a Brutal Truth Very Few People Are Brave Enough to Admit msn.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from msn.com Daily Mail and Mail on Sunday newspapers.
Synopsis
Wall Street loves the fees that deal-making generates, and the press loves the stories that colorful promoters provide, Buffett said. Charlie and I would be less than human if we did not feel a special kinship with our fifthbucket: the million-plus individual investors who simply trust us.
Warren Buffett released his annual letter to Berkshire Hathaway shareholders on Saturday. Read the full text here:
To the Shareholders of Berkshire Hathaway Inc:
Berkshire earned $42.5 billion in 2020 according to generally accepted accounting principles (commonly called GAAP). The four components of that figure are $21.9 billion of operating earnings, $4.9 billion of realized capital gains, a $26.7 billion gain from an increase in the amount of net unrealized capital gains that exist in the stocks we hold and, finally, an $11 billion loss from a write-down in the value of a few subsidiary and affiliate businesses that we own. All items are stated on an after-tax basis.