- Warren Buffett published his annual letter to Berkshire Hathaway shareholders on Saturday.
- The investor touched on Berkshire tax payments and asked the government to spend wisely.
- Buffett applauded the Todd Combine for the return of Geico and praised the determination of Greg Abel.
Warren Buffett underlined the massive degree of Berkshire Hathaway tax payments, asked the government to spend the money wisely and greeted two of his descendants in his annual letter to shareholders on Saturday.
The 94-year-old investment icon wrote that his conglomerate paid the zero income tax in the 1965 year he received the company’s control.
“This kind of economic behavior can be understandable for the fascinating beginnings, but it is a yellow light when it happens on an honorable pillar of the American industry,” Buffett said. “Berkshire headed to Ash Can”.
But in 2024, Berkshire paid $ 26.8 billion – most of every US company in history and about 5% of total income taxes from US corporations paid that year, Buffett said. The company has now paid more than $ 101 billion in US Treasury income tax, he added.
Buffett urged the Federal Government to use money to ease poverty and warned officials against overload or dollar destabilization.
“Pass it wisely,” he wrote. “Take care of many people who, without their fault, get the short straws in life. They deserve better. And never forget that we need you to keep a steady currency and that result requires both wisdom and vigilance on your side. “
The billionaire’s philanthropy also said: “Paper money can see its value to evaporate if fiscal folly prevails. Bonds do not provide protection against the runaway currency.”
Geico, shares and cash
Berkshire’s general manager praised one of his MPs, Todd Combs, for the revitalization of Geico since taking over as the insurer’s CEO in 2020.
Geico’s pre-taxes more than doubled last year to $ 7.8 billion, Berkshire’s annual report on Saturday said. The vehicle insurer gained higher average premiums for politics, with no lower frequencies of demand and worked more efficiently.
“Geico was a long -held gem that needed great replacement,” Buffett said, greeting last year’s results as “spectacular” while stressing that there was still work to do.
Todd Combs is Geico’s CEO, the insurer owned by Berkshire Hathaway.
Drew Angerer/Getty Images
In all, Berkshire’s operating income increased 27% to $ 47.4 billion last year, even when profits fell to 53% of its 189 operating businesses.
Buffett and his team sold a net of $ 6.7 billion in the last quarter. For the full year, they bought $ 9.2 billion and sold $ 143 billion, which means they have loaded $ 134 billion in a net base.
They did not buy any Berkshire action in the fourth quarter. Their stock purchases for the year were only $ 2.9 billion, compared to $ 9.2 billion in 2023 and $ 7.9 billion in 2022.
Increasing operating profits, stock sales and lack of purchases promoted an increase in the batch of Berkshire money in a record of $ 334 billion since December 31 (or $ 321 billion if you go down $ 12.8 billion payable for Treasury bill purchases ). This is approximately twice the $ 168 billion cash he held at the end of 2023.
In his letter, Buffett said that Greg Abel, his descendant planned as CEO, “has vividly indicated his ability to act” when opportunities are born to accumulate shopping.
Buffett also underlined that Berkshire’s wide rate means that it may take a whole year to get out of a position in his stock portfolio. “We can’t come and go to a coin,” he wrote.
“Oracle of Omaha” also joked about his lack of ability in many areas other than investing in big businesses.
“The lack of assets such as athletic perfection, a wonderful voice, medical or legal ability or, on this matter, any particular talent, I have had to rely on capital throughout my life,” he said.