Warren Buffett Offers Trump Advice, Celebrates Berkshire Hathaway (Connecting the Dots: Warren Buffett, The Nuclear Threat Initiative, The Urban Institute & Soros Funding, All Networking)
Newsmax.com
Saturday,
22 February 2025 11:25 AM EST
https://www.newsmax.com/newsfront/warren-buffett-berkshire/2025/02/22/id/1200085/
In
his annual letter to shareholders Saturday, Warren Buffett celebrated the
successes of Berkshire Hathaway's companies last
year and in the 60 years since he took over a struggling New England textile
company and began converting it into a massive conglomerate while offering some
advice to President Donald Trump.
Buffett
opened the letter by acknowledging that he has occasionally made mistakes over
the years without offering many specific examples, but he assured shareholders
that the man he has chosen to one day succeed him as CEO, Greg Abel, isn't one
of them. He wrote that Abel will be ready to act whenever he spots significant
investment opportunities.
Buffett
hardly reflected on his long tenure as CEO in the letter — unlike 10 years ago
when he and his longtime investing partner Charlie Munger, who died in 2023,
issued separate reflections on the company.
Buffett
cited the fact that Berkshire paid zero income tax in the decade before he took
over in 1965 as a sure sign the investment was a mistake, but over time the
amount Berkshire pays to the IRS has grown along with the conglomerate to hit
$26.8 billion last year — “far more in corporate income tax than the U.S.
government had ever received from any company — even the American tech titans
that commanded market values in the trillions.”
Buffett
has hardly mentioned politics and current events in his recent letter —
preferring to stay away from anything controversial that might hurt Berkshire's
companies — but Saturday he urged the government to be responsible with the
money he sends it.
"Thank
you, Uncle Sam. Someday your nieces and nephews at Berkshire hope to send you
even larger payments than we did in 2024. Spend it wisely. Take care of the
many who, for no fault of their own, get the short straws in life. They deserve
better. And never forget that we need you to maintain a stable currency and
that result requires both wisdom and vigilance on your part," Buffett
wrote, reinforcing some of the Democratic ideals he has long supported.
CFRA
Research analyst Cathy Seifert said, “I thought honestly in a very subtle way
that was a powerful message.”
Abel
will have plenty of resources to work with when he eventually takes over given
that Berkshire now holds $334.201 billion cash after selling off much of its
Apple and Bank of America stock in the past year and continuing to generate
money from all its subsidiaries that include Geico insurance, BNSF railroad, a
collection of major utilities and an assortment of major manufacturers and
well-known retail businesses that include brands like Dairy Queen and See's
Candy. That's almost double the $167.6 billion cash Berkshire held a year ago.
Buffett
did find a few things to use some of that cash on last year by spending $3.9
billion to acquire the rest of its utility business from the estate of a former
partner and another $2.6 billion to buy the rest of the Pilot truck stop chain.
Buffett said he also increased Berkshire's investment in five major Japanese
conglomerates. Berkshire has now spent $13.8 billion over the past six years on
those Japanese investments that are now worth $23.5 billion.
But
while Buffett has struggled to find major acquisitions in recent years he
affirmed that he has no plans to offer a dividend.
Investor
Bill Smead of Smead Capital Management said Buffett's actions show he's
actually “bearish as hell but won’t admit it." He said Buffett doesn't
want to scare people, but shareholders can look to his past writings and his
actions to see that he likely thinks the stock market is terribly expensive.
And some of the best investment opportunities he's found in recent years have
been outside the United States.
In
what might be a nod to the 94-year-old Buffett's age, the legendary investor
announced that this year's shareholder meeting in May that routinely attracts
tens of thousands of people will be shorter. Buffett and Berkshire's two vice
chairmen will only answer questions from 8 a.m. until 1 p.m. — several hours
less than usual. Buffett also acknowledged using a cane these days to avoid
“falling flat on my face.”
Buffett
began buying Berkshire stock for $7.60 a share in 1962. The stock grew to be
the world’s most expensive shares because of Buffett’s remarkable success in
building Berkshire and his aversion for splitting the stock. Berkshire’s Class
A shares closed at $718,750 apiece on Friday, but the company does have a more
affordable Class B stock that sells for $478.74.
Buffett
promises shareholders a chance to buy a special 60th anniversary book filled
with untold stories and lessons from the company's history at the annual
meeting.
Connecting the Dots:
Warren E. Buffett is
the chairman & CEO for Berkshire Hathaway Inc., a life trustee
at the Urban Institute (think tank) and an adviser at
the Nuclear Threat Initiative (think tank).
Foundation to Promote Open Society was a funder
for the Urban Institute (think tank) and the Carnegie
Endowment for International Peace (think tank).
George Soros was the chairman
for the Foundation to Promote Open Society.
Carnegie
Endowment for International Peace (think tank) was a
funder for the Nuclear Threat Initiative (think tank).
Resources:
Past Research
Smaller
Bites – Connecting the Dots: Warren Buffett, Apple
& Soros Funding (Past Research on Warren
Buffett)
Tuesday,
May 9, 2023
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