InvestorQ : What are the major highlights of the latest annual letter to shareholders issued by Berkshire Hathaway? How has Warren Buffett done in the year 2020?
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What are the major highlights of the latest annual letter to shareholders issued by Berkshire Hathaway? How has Warren Buffett done in the year 2020?

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shrinidhi Rajan answered.
2 months ago
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Here are some of the key highlights of the Berkshire Hathaway annual report and of course, the now famous letter to shareholders put out by Warren Buffett.

· Berkshire Hathaway still believes that the best way to reward its shareholders is to buy back stock and help shareholders increase their ownership. In CY20, Berkshire bought back a record $24.7 billion of its own stock, of which $18 billion was in Q3 and Q4.

· The obvious reason is the huge pile of cash and limited investment options available in the market. Berkshire has refused to buy into this liquidity driven bull rally in the markets and has been his stance since 2010 when the liquidity rally started.

· It was another year when Berkshire did not make any significant and sizable acquisition of shares. Berkshire sits on an incredible cash pile of $138 billion and most of this money is just sitting in treasury bills, which Buffett is comfortable with.

· As usual, Buffett stood by his optimism for America, with his now famous shibboleth, “Never bet against America”. It is a tad surprising that his optimism for the American story has not translated into fresh investments.

· Apple continues to be his most successful investment in recent years. His $31 billion investment in Apple is worth $120 billion and Apple alone accounts for 50% of the MTM profits of the entire portfolio of Berkshire Hathaway of $180 billion.

· As Buffett admits, they made their mistakes too. Berkshire wrote down $11 billion on Precision Castparts. As Buffett admitted, they had overestimated the potential revenues and cash flows of the company and opted to take a hit and exit the stock.

· Interestingly, there was no reference to succession planning. Warren Buffett is 91 and his partner, Charlie Munger, is 97. However, Buffett opted to avoid giving any direct answers on the subject of who will take over from Buffett and Munger.

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