Buffett noted, however, that only $36 billion came from Berkshire's operations. 'The remaining $29 billion was delivered to us in December when Congress rewrote the US Tax Code'.
Warren Buffett's Berkshire Hathaway Inc on Saturday reported a record quarterly and annual profit, fueled by a big cut in the USA corporate income tax rate championed by President Donald Trump. "We have $90 or $95 billion in gains, and our owners, dollar for dollar, will participate in that..."
Both are considered candidates to eventually replace Buffett, 87, as Berkshire's chief executive.
"You and I are lucky to have Ajit and Greg working for us", Buffett wrote.
The year also saw the company's war chest swell to $116 billion in cash and US Treasury bills, financial manna that Buffett wants to use to make significant new acquisitions. Berkshire typically pays all cash for acquisitions.
"P$3 rices for decent, but far from spectacular, businesses hit an all-time high" a year ago, he wrote.
Wells Fargo and Apple were at the top of the list.
The lower tax rate also contributed to a 23% full-year boost in Berkshire's book value, which measures assets minus liabilities and which Buffett considers a good indicator of Berkshire's net worth, to $211,750 per class A share.
It's important to remember that even Buffett's Berkshire Hathaway (BRK-A, BRK-B) hasn't been immune to significant swings in its stock price either. Or lower the bar he has set to buy back company stock, paving the way for a share buyback announcement? And sometimes I will make expensive mistakes.
Warren Buffett handily won the bet he entered against hedge funds in 2007.
Known to fans as "the Oracle of Omaha", Buffett, 87, has suggested U.S. stocks are probably the best bet over time, encouraging people to make easy choices and stick with them, eschewing high-fee fund managers, for instance.
"We expect Buffett's annual letter to reassure investors that his health remains remarkable and he intends to be around for awhile", said Cathy Seifert, equity analyst at CFRA Research in NY.
Buffett says a 10-year bet he made with a group of hedge funds shows why investors should be wary of fees and focus on investing regularly for the long term.