Berkshire Hathaway Letters to Shareholders 1965-2015 : Amazon in: Books

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Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. This is another instance of Buffett warning investors of the dangers of irrational exuberance on Wall Street without (key word!) telling investors to sell their stock or avoid the market altogether. When Berkshire Hathaway (BRK.A 1.00%) (BRK.B 1.01%) CEO Warren Buffett speaks, the whole of Wall Street https://forexarena.net/ pays close attention. Barring significant changes in the business prospects, it will pay shareholders a set amount every year (or often more frequently). Buffett sees share repurchases as the best way to return cash to shareholders. After a long drought in share buybacks due to restrictive language in the repurchase authorization, the Berkshire board of directors changed things in mid-2018.

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This remaining stake totaled 7,531,765 shares, as of March 31. While I can’t read minds, this sounds like a roundabout admission that stocks are pricey. In his nearly six decades as CEO, Buffett has emphasized patience in waiting for amazing businesses to fall to attractive price points. The $277 billion (and growing) in collective cash, cash equivalents, and U.S. Treasuries on Berkshire’s balance sheet (as of June 30) points to the lack of value the Oracle of Omaha and his crew are seeing.

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Buffett is known for spending a good deal of time carefully writing the letters to be both informative and understandable. Further, Berkshire Hathaway’s brightest investment minds sold roughly 3.11 million shares of Chevron during the first quarter. Once the train gets rolling in either direction, it’s pretty common for buying or selling activity to be a multi-quarter event for a security held by Buffett’s company. But you don’t always have to wait for Berkshire’s 13F to know what the Oracle of Omaha and his top investment aides, Todd Combs and Ted Weschler, have been up to. Thanks to the company’s quarterly operating results, annual shareholder meeting, and Form 4 filings with the SEC, we already know about three big moves that have been made. Using 10 years of earnings history smooths out the effect of one-off events that could otherwise adversely affect valuation models.

• Return the speakers in the original condition in brand box to avoid pickup cancellation.
• The Oracle of Omaha has sold shares of Bank of America stock for 12 consecutive sessions, and it likely speaks to a bigger problem on Wall Street.
• Chinese language edition of Poor Charlie’s Almanack, the ever popular book about my partner.
• Berkshire’s annual meeting also shed light on another disposition that was widely telegraphed.

I have invested most of my life and managed money professionally for 9 years. Buffett’s philosophies have had a huge impact on how I run my businesses and live my life. I put this collection together as a thank you for his positive influence on me and many, many others. MiTek by Jim Healey I recommend MiTek, an informative history of one of our most successful companies. You’ll learn how my interest in the company was originally sparked by receiving a piece of ugly metal in the mail whose purpose I couldn’t fathom.

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A 13F is a quarterly filing that provides an under-the-hood look at what Wall Street’s smartest (and richest) money managers have purchased and sold. Berkshire’s 13F detailing its activity during the June-ended quarter is slated for release after the closing bell on August 14. A big clue from Berkshire Hathaway’s latest operating results strongly suggest he’s paring down one of his top holdings, and may have completely exited his stake in another key value stock. American Express is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Apple, Bank of America, Berkshire Hathaway, and Chevron. The company’s new generative AI capabilities only work on iPhone 15 Pro, iPhone 15 Pro Max, and newer models.

There’s a good chance, in my view, that a multi-year surge of iPhone upgrades could be on the way as customers buy new smartphones to take advantage of the artificial intelligence features. Bank of America (BAC 0.61%) remains Buffett’s second-biggest position, at least for now. That could soon change, though, with Buffett selling big chunks of his BofA position in recent days. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. Warren Buffett’s willingness to back away from the proverbial casino and meaningfully pare down his company’s leading stakes in Apple and now Bank of America strongly suggests he’s struggling to find value.

Lastly, with Buffett referring to Occidental Petroleum as an “indefinite” holding in his most recent annual letter to shareholders, there may not be a need to have so much capital tied up in Chevron. After all, energy stocks have rarely played a key role in Berkshire’s Hathaway’s investment portfolio. As Berkshire’s position in Occidental grows, it wouldn’t be surprising to see a corresponding reduction berkshire hathaway letters to shareholders in its stake in Chevron. Going forward, Wall Street expects Berkshire to grow operating earnings at 12% annually over the next three years. That makes the current valuation of 22 times operating earnings look a little expensive, though Buffett clearly believes the stock is undervalued. When the first quarter came to a close, Berkshire held 6,597,947 shares of this premier building solutions company.

For those of you without calculators handy, this equates to $131.6 billion in cumulative net-selling activity since Oct. 1, 2022. Including the present, there have only been a half-dozen occasions in more than 150 years where the Shiller P/E ratio has topped 30 during a bull market. The previous five instances were all followed by plunges of 20% to 89% for Wall Street’s major stock indexes. Buffett certainly knows more about Berkshire Hathaway, its operations, and what’s in store for the company than anyone on the planet. But his decision to significantly slow share repurchases is more of a warning sign than an outright sell signal. Items that you no longer need must be returned in new and unopened condition with all the original packing, tags, inbox literature, warranty/ guarantee card, freebies and accessories including keys, straps and locks intact.

You can find most of the letters for free on Berkshire’s website, but this compiles them into a well-designed, easily readable format. However, Berkshire’s second-quarter operating results offer a big clue as to what other trades may have been executed. More specifically, the fair value cost basis for the company’s “Commercial, industrial, and other” segment declined from $46.026 billion on March 31, 2024 to $45.006 billion on June 30, 2024. This segment excludes financial stocks and consumer products, but includes a host of other sectors and industries. Berkshire’s annual meeting also shed light on another disposition that was widely telegraphed. Buffett admitted that he — and he alone — had sold the entirety of his company’s remaining stake in legacy media company Paramount Global (PARA -0.78%).

I have been reading the company’s annual report for over 50 years. The Little Book of Common Sense Investing by John Bogle There are some investment managers, of course, who are very good – although in the short term, it’s hard to tell whether a great record is due to luck or skill. However, most advisors are much better at making high fees than generating high returns. Instead of listening to their siren songs, investors — big and small — should read Jack Bogle’s The Little Book of Common Sense Investing instead.

Since we bought the MiTek in 2001, it has made 33 “tuck-in” acquisitions, almost all of them successful. While a summer reading list or a “best books of the year” list is nothing new, a book recommendation when it comes to Warren Buffett means something entirely different. Customers find the information in the book priceless, and the compilation great. My second prediction is that the Oracle of Omaha and/or his investment aides showed Louisiana-Pacific (LPX -0.25%) to the door. Louisiana-Pacific is a provider of siding/outdoor building solutions used primarily in new construction.

For shareholders and others who are interested, a book that compiles the full unedited versions of each of Warren Buffett�s letters to shareholders between 1965 and 2014 is available for sale at this link. All the necessary catalysts to encourage Buffett and his team to lock in gains are there. Buffett has sold more equities than he’s purchased for seven consecutive quarters, with $131.6 billion in aggregate net-equity sales since Oct. 1, 2022. Few investors command Wall Street’s attention quite like Berkshire Hathaway (BRK.A 0.99%) (BRK.B 1.03%) CEO Warren Buffett. Since taking the reins in 1965, the appropriately named “Oracle of Omaha” has nearly doubled up the annualized total return of the benchmark S&P 500. On an aggregate basis, Buffett has overseen a gain of 5,174,441% in Berkshire’s Class A shares (BRK.A), as of the closing bell on August 7.

Indeed, the average iPhone sells for three times more than the average Android smartphone. Apple has a strong presence in smartphones, personal computers, tablets, and smartwatches, and the company also operates the leading mobile app store and it has one of the fastest-growing advertising businesses in the U.S. Though the Shiller P/E isn’t a timing tool and won’t help investors decipher when stock market corrections will begin, it does have a flawless track record of eventually forecasting major downside in the stock market. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. For seller-fulfilled items from Sports collectibles and Entertainment collectibles categories, the sellers need to be informed of the damage / defect within 10 days of delivery.