OMAHA, Neb. (AP) — In his yearly letter to shareholders on Saturday, Warren Buffett applauded the achievements of Berkshire Hathaway’s businesses over the past year and during the 60 years since he transformed a failing New England textile firm into a colossal conglomerate, while offering some counsel to President Donald Trump.
Buffett began the letter by admitting that he has made mistakes throughout the years, though he provided few specific examples. He reassured shareholders that Greg Abel, the individual he has selected to eventually succeed him as CEO, is not among them. He noted that Abel will be poised to act whenever he identifies substantial investment opportunities.
Unlike a decade ago, when he and his longtime investing partner Charlie Munger, who passed away in 2023, shared personal reflections on the company, Buffett’s recent letter focused less on his lengthy tenure as CEO.
Buffett highlighted that Berkshire paid no income tax in the decade leading up to his acquisition in 1965, indicating that the investment was a mistake. However, as Berkshire has expanded, its tax contributions have increased, reaching $26.8 billion last year—“far surpassing what the U.S. government has ever received from any corporation—even the American tech giants valued in the trillions.”
In his recent letter, Buffett largely avoided discussions of politics and current affairs, steering clear of contentious issues that could negatively impact Berkshire’s operations. Nonetheless, he urged the government to be prudent with the funds he provides.
“Thank you, Uncle Sam. One day, your nieces and nephews at Berkshire hope to send you even larger contributions than we did in 2024. Use it wisely. Assist those who, through no fault of their own, face hardships. They deserve improvement. And never forget, we need you to sustain a stable currency—this requires both wisdom and vigilance from you,” Buffett expressed, emphasizing some Democratic principles he has consistently endorsed.
According to CFRA Research analyst Cathy Seifert, “I interpreted that as a subtle yet powerful message.”
When Greg Abel eventually takes over, he’ll have ample resources at his disposal, as Berkshire currently boasts $334.201 billion in cash after offloading much of its Apple and Bank of America stock in the past year, along with continued revenue from its diverse subsidiaries including Geico insurance, BNSF railroad, a variety of major utilities, and well-known retail brands like Dairy Queen and See’s Candy. This amount is nearly double the $167.6 billion in cash Berkshire had a year prior.
