While Berkshire Hathaway lost more than $25 billion in 2018, it earned $29,2 billion last year
Berkshire shareholders don’t need to worry about future of the company once I die, Warren Buffett said.
Berkshire Hathaway economic result were supported by the fact that the company didn’t invest in anything last year. Apart from reaching net profit of almost $30 billion, free cash level was affected, too. In the end of last year, its value reached $128 billion.
Warren Buffett has long been complaining about lack of investment opportunities on the market. Available opportunities don’t seem to bring any decent appreciation, and so the American billionaire avoids them – or at least in limited amount.
Even though Berkshire returned to the black, investors did not appreciate it properly. Buffett’s investment empire should grow in 11%, while S&P 500 index rose in 31,5% last year. Berkshire experienced its largest underestimation in connection to S&P share index since 2009.
Yet according to Buffett, there is no reason why Berkshire stakeholders should worry about future of the company. “Our company is 100% ready for any possible withdrawal,“ The Oracle of Omaha said to the address of his 96-year old business partner and vice president Berkshire Charlie Munger.