In his yearly letter to Berkshire Hathaway’s shareholders, Chairman Warren Buffett reviewed the variety of businesses owned by the $700 billion conglomerate.
“Whatever our form of ownership, our goal is to have meaningful investments in businesses with both durable economic advantages and a first-class CEO,” he explained. This approach is centered on expectations of long-term business performance “and not because we view them as vehicles for timely market moves.”
He and business partner Charles Munger “are not stock-pickers; we are business-pickers,” Buffett said.
And they aren’t perfect. “I make many mistakes,” the Oracle of Omaha admitted. “Consequently, our extensive collection of businesses includes some enterprises that have truly extraordinary economics, many others that enjoy good economic characteristics, and a few that are marginal.”
Buffett noted that he and Munger found few exciting investments in 2021. Thus, the firm spent $27.1 billion on buybacks last year, which was acceptable to some Berkshire investors.
“They’re still at what we think to be such a comfortable discount in valuation from intrinsic value per share that we still believe every penny spent is accretive to the remaining shareholders,” Tom Russo of the investment firm Gardner Russo & Quinn said in an interview with Bloomberg.
Check out the gallery above for some interesting nuggets from Buffett’s annual shareholder letter.
(Cover image: Chris Nicholls/ALM; Shutterstock)