Warren Buffett has a message for presidential candidates and others who are down on the US economy: You are “dead wrong”.
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In his annual letter to Berkshire Hathaway Inc. shareholders on Saturday, the world’s third-richest person, Warren Buffett, expressly addressed a number of issues that have been brought up as a result of the company’s recent business decisions, according to The Wall Street Journal.
Investing sage Warren Buffett has delivered his annual letter to Berkshire Hathaway shareholders; those fortunate holders of the $US200,000 stock.
This year’s installment arrived on the web at just the right time, amid a political season in which almost every candidate is trying to convince us that we are heading down the wrong path and that our very way of life is being threatened, unless, of course, we vote for them.
Read on for some of the most illuminating highlights of his 2015 letter to shareholders. Two years ago, Berkshire insured a $1 billion prize Quicken Loans offered, but didn’t have to pay because no one had a ideal bracket.
It moves roughly 17% of America’s intercity freight, he says, and 45% more ton-miles of freight than its closest competitor.
The US holding company saw a reduction in its operating earnings generating by underwriting previous year though the amount it generated from insurance investment income increased.
“People did not drive as well (in 2015) as they did the year before”.
Buffett struck an optimistic tone in the wide-ranging letter, which largely focused on what contributed to his conglomerate’s $24 billion profit past year and discussed Berkshire’s prospects for the future.
Yet over that period, Berkshire’s stock has ultimately almost quadrupled in value. There’s no fee to enter and anyone who’s employed at one of Buffett’s companies as of March 1, 2016, is eligible to participate.
“As a citizen, you may understandably find climate change keeping you up nights”, writes Buffett.
On top of Berkshire’s own lagging stock performance, many of Buffett’s favorite stocks also suffered.
To prove his point, Buffett turned to three industries in which Berkshire has a stake: freight, insurance and utilities.
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“We would be better off if we had a big mattress in Europe that we could stick all the stuff in”, Buffett joked.
