Before annual general meeting one of the world’s greatest investors, Warren Buffett, 89, in his annual letter to Berkshire Hathaway shareholders said on February 22, that Berkshire Hathaway is prepared for his departure as well as that of Charlie Munger 96. Berkshire will have its annual general meeting on May 02, 2020.
“Charlie and I long ago entered the urgent zone. That’s not exactly great news for us. But Berkshire shareholders need not worry: Your company is 100 percent prepared for our departure,” Buffett’s annual letter.
The Oracle of Omaha said earlier hists from shareholders, media and board members that the company’s two key operating managers Ajit Jain and Greg Abel will given more exposure at annual general meeting makes sense. Jain, 67, and Able, 57, had been promoted to the board of directors the previous year.
“They are outstanding individuals, both as managers and as human beings, and you should hear more from them,” Buffett wrote in his anuual letter.
Buffett wrote, “we constantly seek to buy new businesses that meet three criteria. First, they must earn good returns on the net tangible capital required in their operation. Second, they must be run by able and honest managers. Finally, they must be available at a sensible price.”
Berkshire posted record full-year earnings of $81.42 billion in 2019, boosted by unrealized gains from its stock investments. Operating earnings, however, fell 3% to $23.97 billion.
Buffett, whose $90.2 billion net worth makes him the world’s fourth-richest person according to Forbes magazine, said that while he still prefers buying whole companies, stocks are a better bet than low-yielding bonds.
Amazon, American Express, Apple, Bank of America, Bank of New York BNSF, Coca Cola, Delta Airlines, Goldman Sachs, Geico, JP Morgan Chase, Moody’s, PacifiCorp, U.S. Bancorp and Wells Fargo are among the top holdings of Berkshire.
“It is certain that Berkshire’s rewards from these 10 companies, as well as those from our many other equity holdings, will manifest themselves in a highly irregular manner. Periodically, there will be losses, sometimes company-specific, sometimes linked to stock-market swoons. Overall, the retained earnings of our investees are certain to be of major importance in the growth of Berkshire’s value,” Buffett’s letter said.
Buffett said his estate may need 12 to 15 years to dispose of his Berkshire stock, which is going to charities including the Bill & Melinda Gates Foundation, and Berkshire stock will be “a safe and rewarding investment” during that time.