Warren Buffett’s letter to shareholders that just came out with the Berkshire Hathaway 2021 annual report on February 26, 2022 is always full of amazing investing lessons and wisdom. What will Buffett do with $144 billion cash?! Let’s find out!
My Video With Full Highlights of Warren Buffett’s 2021 Berkshire Hathaway Letter:
-Intro To Buffett’s 2021 Letter
-Berkshire’s Intrinsic Value Went Up In 2021
-Warren And Charlie Are Business Pickers
-Wonderful Businesses At Wonderful Prices
-Berkshire Will Always Be Building Infrastructure
-Berkshire Hathaway Compounding Magic Origin Story
-Insurance Float Is Why Berkshire Is So Powerful
-The Four Giants Of Berkshire
-Top 15 Equities, Some Todd & Ted Manage
-What Buffett’s Doing With $144 Billion Cash
-Share Buybacks Increase Shareholder Wealth
-Buffett Is Waiting To Buy Stocks On Sale
-Paul Andrews Of TTI Story
-Buffett’s Thanks And Final Lessons
Berkshire’s annual meeting is happening IN PERSON again on April 30, 2022 in Omaha, Nebraska! I definitely plan to be there so let me know in the comments if you’ll also be there!
Normally there would be more of “what Charlie and I believe is new or interesting at Berkshire” in the in the annual 10-K but Buffett said, “alas, there was little action of that sort in 2021. We did, though, make reasonable progress in increasing the intrinsic value of your shares.”
Buffett emphasized that “Charlie and I are not stock-pickers; we are business-pickers.” Every now and then, they can buy pieces of “wonderful businesses at wonderful prices” in the form of stocks. And he reiterated again that “I make many mistakes.” So it’s easier to exit from the mistakes in common stocks than from negotiated whole business purchases.
The four giants that make up the majority of Berkshire’s intrinsic value: 1) Insurance businesses, 2) Apple stake, 3) Burlington Northern Santa Fe (BNSF), and 4) Berkshire Hathaway Energy (BHE).
Buffett is proud of how BNSF and BHE generated record earnings “after interest, taxes, depreciation, amortization and all forms of compensation.” He shares a strong warning about how other companies make “deceptive ‘adjustments’ to earnings” (like EBITDA) and he wrote “less politely, I would say that bull markets breed bloviated bull.”
I look forward to making more investor friends! Add me on Instagram: michellemarki