Buffett hardly even addressed the coronavirus that ravaged many businesses last year, instead focusing on the long-term prospects for the railroad, utility and insurance businesses and stocks that belong to
“In its brief 232 years of existence, however, there has been no incubator for unleashing human potential like America. Despite some severe interruptions, our country’s economic progress has been breathtaking,” Buffett wrote.
Buffett's annual letter is always well read in the business world because of his remarkably successful track record and his knack for explaining complicated subjects in simple terms.
But he didn't offer much explanation for why Berkshire hasn't made a major acquisition in several years or discuss the company's recent major new investments in
“The one thing that caught my eye about the letter was sort of what it didn’t have,”
Buffett, a long-time Democrat, largely avoided politics in the letter but he did express faith in the future of the country.
“We retain our constitutional aspiration of becoming ‘a more perfect union.’ Progress on that front has been slow, uneven and often discouraging. We have, however, moved forward and will continue to do so. Our unwavering conclusion: Never bet against America,” he said.
Buffett said Berkshire's
Buffett said one of his biggest investments last year was the
In addition to the letter, Berkshire said its fourth-quarter profits grew 23% to
Buffett maintains that Berkshire’s operating earnings offer a better view of quarterly performance because they exclude investments and derivatives, which can vary widely. By that measure, Berkshire’s operating earnings increased by nearly 14%, to
The four analysts surveyed by FactSet expected Berkshire to report quarterly operating earnings per Class A share of
One of Berkshire's hardest-hit businesses last year was aviation parts manufacturer
“No one misled me in any way – I was simply too optimistic about PCC’s normalized profit potential,” Buffett said. “Last year, my miscalculation was laid bare by adverse developments throughout the aerospace industry, PCC’s most important source of customers.”
Besides the business lessons Buffett offered in his missive, the 90-year-old investor reassured his stockholders that he has no plans to retire; he said one of Berkshire’s most-experienced managers had retired at the “ridiculously premature retirement age” of 103.
In a break from tradition, this year's annual meeting will be broadcast from
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