In a poignant annual letter to Berkshire Hathaway shareholders, Warren Buffett sought to reassure investors about the conglomerate’s enduring strength, even as he mourned the recent loss of his long-time partner, Charlie Munger. Buffett, in the letter accompanying a record $37.4 billion full-year operating profit, emphasized that Berkshire Hathaway, with its substantial $900 billion valuation, is a fortress capable of weathering unprecedented financial disasters.
“Berkshire is built to last,” Buffett wrote, signaling confidence in the conglomerate’s resilience over the long term. However, he also tempered expectations for the company’s stock performance, citing its immense size as a limiting factor for “eye-popping performance.” Buffett acknowledged that only a handful of companies in the country could significantly impact Berkshire’s trajectory, and some of them have already been extensively evaluated.
While addressing concerns about leadership transition, the 93-year-old billionaire magnate reassured investors about Vice Chairman Greg Abel’s preparedness to assume the role of CEO whenever necessary. Abel has been designated as Buffett’s successor, and Buffett expressed confidence in his ability to lead Berkshire effectively.
In a heartfelt tribute to Charlie Munger, who passed away at the age of 99 in November, Buffett referred to him as the “architect” of Berkshire. He acknowledged Munger’s pivotal role in shaping the conglomerate, describing himself as merely the “general contractor.” Buffett reminisced about Munger’s influence and how he encouraged the acquisition of outstanding businesses, underscoring Munger’s significant contributions to Berkshire’s success.
Buffett’s annual letter not only provided financial insights but also served as a testament to the enduring legacy of Berkshire Hathaway, assuring shareholders of its stability in the face of leadership changes and the loss of a key figure like Charlie Munger.
