Daily Trends Now
Daily Trends Now

Warren Buffett to retire from Kraft Heinz

Warren Buffett to retire from Kraft Heinz

As The Oracle is quick to point out, only $36B of that $65B gain in book value came from operations.

In its annual report filed alongside Buffett's letter, Berkshire details exactly how it got to the $29 billion tax bill-related benefit. "But 2017 was far from standard: A large portion of our gain did not come from anything we accomplished at Berkshire". No, it was the Republican-led rewrite of the American tax code.

The billionaire and CEO of Berkshire Hathaway highlighted a $29 billion tax gain for his company, bemoaned a lack of good deals and reminded his readers that owning stocks through low-priced index funds was the best way to build wealth over time.

"You and I are lucky to have Ajit and Greg working for us", Buffett told shareholders.

Buffet said that a dearth of "sensible" valuations led it to close nearly no takeovers of companies in 2017, adding that "price seemed nearly irrelevant to an army of optimistic purchasers".

He let investors know why Berkshire, which is now sitting on a record $116 billion in cash, didn't pull the trigger on any mega-deals past year.

"P$3 rices for decent, but far from spectacular, businesses hit an all-time high" previous year, he wrote. Berkshire also owns scores of businesses that it has acquired over the years: auto insurer Geico, Dairy Queen and BNSF Railway Company. As a result, Berkshire's full-year 2017 net income could jump to an estimated $52 billion, or more than double earnings in 2016. Over the past 53 years, Berkshire has grown its per-share book value at a 19.1% rate compounded annually.

Despite our recent drought of acquisitions, Charlie and I believe that from time to time Berkshire will have opportunities to make very large purchases.

Buffett in 2007 bet a founder of the asset management company Protégé Partners LLC $1 million that a Vanguard S&P 500 index fund would outperform several groups of hedge funds over a decade.

Buffett urged investors to stick with stocks even though they can be riskier in the short-term.

Warren Buffett says the Trump tax cuts passed late past year were a huge win for him and his company, Berkshire Hathaway (BRK-A, BRK-B).

Edward Jones analyst Jim Shanahan says he expected Buffett to devote more of the letter to explaining his decision to promote and name the top two candidates to eventually succeed him as Berkshire's CEO.


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