Warren Buffett acknowledges challenges for Berkshire Hathaway's future growth due to its size and limited investment opportunities. Berkshire has acquired Alleghany and Occidental Petroleum but lacks transformative "elephant-sized" deals. With $167.6 billion in cash, the company remains financially strong but faces a lack of enthusiasm for exceptional investments. Despite these challenges, Berkshire's stock performance remains impressive, reflecting investor confidence in its long-term prospects.
Warren Buffett's annual letter to shareholders highlights Charlie Munger's invaluable contributions and pays tribute to his legacy. The letter also discusses Berkshire Hathaway's positive outlook and the performance of its portfolio. Despite facing headwinds like inflation, Berkshire remains strong financially and continues to seek value-driven investment opportunities.
Despite strong earnings and record cash levels, Berkshire Hathaway's stock prices experienced a downturn. Class A shares fell 2.2% and class B shares closed at $409.14. Analysts speculate that the optimistic earnings outlook is already reflected in the current share price. In his annual letter, Warren Buffett anticipates that Berkshire's performance will exceed the average company but will be influenced by its growing size. The company aims to acquire businesses that contribute significantly and avoid substantial capital losses.
