{"id":1437,"date":"2023-02-25T20:02:47","date_gmt":"2023-02-26T01:02:47","guid":{"rendered":"https:\/\/embarrdowns.com\/warren-buffetts-annual-letter-to-shareholders-reflections-on-value-investing-tax-contributions-and-more\/"},"modified":"2023-02-25T20:02:48","modified_gmt":"2023-02-26T01:02:48","slug":"warren-buffetts-annual-letter-to-shareholders-reflections-on-value-investing-tax-contributions-and-more","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/warren-buffetts-annual-letter-to-shareholders-reflections-on-value-investing-tax-contributions-and-more\/","title":{"rendered":"Warren Buffett’s Annual Letter to Shareholders: Reflections on Value Investing, Tax Contributions, and More"},"content":{"rendered":"

Billionaire investor Warren Buffett has long been revered for his value investing style, and many investors strive to emulate his success.[0]<\/a><\/sup> On Saturday, Buffett released his famous annual letter to shareholders of Berkshire Hathaway (BRK-A, BRK-B), taking on some of his favorite topics in share buybacks, taxes, corporate accounting, and his long-term optimism about the U.S. economy.<\/p>\n

Buffett struck a proud, reflective tone in his letter, mapping out plans for his Berkshire shares after he’s gone, and highlighting long-time investment managers Todd Combs and Ted Wechsler role in making equity investments. He extolled the advantages of acquiring stakes in well-run companies and urged shareholders to not focus on book value per share.[1]<\/a><\/sup><\/p>\n

Buffett pointed out that Berkshire’s investments in Coca-Cola and American Express, which were made almost 30 years ago, would yield over $1 billion in dividends in 2022.[2]<\/a><\/sup> Upon finishing construction of those positions in 1994 and 1995, the yearly dividends paid were only $75 million and $41 million, respectively.[3]<\/a><\/sup> In 2021, there were 128 companies in the S&P 500 that earned more than $3 billion in profits \u2014 and Berkshire was the largest shareholder in 8 of these businesses: American Express (AXP), Bank of America (BAC), Chevron (CVX), Coca-Cola (KO), HP Inc. (HPQ), Moody\u2019s (MCO), Occidental Petroleum (OXY), and Paramount Global (PARA).[4]<\/a><\/sup><\/p>\n

In the letter, Buffett reminded readers that Berkshire had paid $32 billion in corporate taxes over the last 10 years, which was equal to 0.1% of the total federal taxes collected during that period, to show that the company was doing its share.[5]<\/a><\/sup> He said that “At Berkshire we hope and expect to pay much more in taxes during the next decade. We owe the country no less: America\u2019s dynamism has made a huge contribution to whatever success Berkshire has achieved \u2014 a contribution Berkshire will always need.”[3]<\/a><\/sup><\/p>\n

Berkshire posted a loss of $22.82 billion for 2022 and a 54% decline in fourth-quarter income.[6]<\/a><\/sup> Operating earnings, which is Buffett\u2019s preferred figure to measure the company\u2019s growth as it is adjusted to remove net capital gains or losses during the year, was $30.79 billion, 12.2% above 2021\u2019s figure.[5]<\/a><\/sup><\/p>\n

0. <\/span>“Invest Like Warren Buffett With These ETFs” Yahoo! Voices, 23 Feb. 2023, https:\/\/www.yahoo.com\/now\/invest-warren-buffett-etfs-130001789.html<\/a><\/a><\/p>\n

1. <\/span>“Warren Buffett’s letter to shareholders, Berkshire Hathaway’s Q4 earnings (NYSE:BRK.A)” Seeking Alpha, 24 Feb. 2023, https:\/\/seekingalpha.com\/news\/3939312-warren-buffetts-letter-to-shareholders-berkshire-hathaways-q4-results-on-tap<\/a><\/a><\/p>\n

2. <\/span>“Warren Buffett’s Berkshire Hathaway is the largest investor in these 8 stocks” MarketWatch, 25 Feb. 2023, https:\/\/www.marketwatch.com\/story\/warren-buffets-berkshire-hathaway-is-the-largest-investor-in-these-8-stocks-1eb967c8<\/a><\/a><\/p>\n

3. <\/span>“Warren Buffett touts key bets, defends taxes, buybacks in annual letter” Markets Insider, 25 Feb. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/warren-buffett-annual-shareholder-letter-coke-amex-buybacks-taxes-earnings-2023-2<\/a><\/a><\/p>\n

4. <\/span>“Berkshire Hathaway Inc. 2022 Shareholder Letter” Seeking Alpha, 25 Feb. 2023, https:\/\/seekingalpha.com\/article\/4581997-berkshire-hathaway-inc-2022-shareholder-letter<\/a><\/a><\/p>\n

5. <\/span>“Highlights from Berkshire Hathaway’s annual report and Warren Buffett’s letter By Investing.com” Investing.com, 25 Feb. 2023, https:\/\/www.investing.com\/news\/stock-market-news\/highlights-from-berkshire-hathaways-annual-report-and-warren-buffetts-letter-3014640<\/a><\/a><\/p>\n

6. <\/span>“Warren Buffett Letter To Shareholders: Berkshire Hathaway Posts Losses \u2014 But Remains Optimistic” Forbes, 25 Feb. 2023, https:\/\/www.forbes.com\/sites\/tylerroush\/2023\/02\/25\/warren-buffett-letter-to-shareholders-berkshire-hathaway-sees-major-losses—but-remains-optimistic\/<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Billionaire investor Warren Buffett has long been revered for his value investing style, and many investors strive to emulate his success.[0]<\/a><\/sup> On Saturday, Buffett released his famous annual letter to shareholders of Berkshire Hathaway (BRK-A, BRK-B), taking on some of his favorite topics in share buybacks, taxes, corporate accounting, and his long-term optimism about the U.S. economy.<\/p>\n

Buffett struck a proud, reflective tone in his letter, mapping out plans for his Berkshire shares after he’s gone, and highlighting long-time investment managers Todd Combs and Ted Wechsler role in making equity investments. He extolled the advantages of acquiring stakes in well-run companies and urged shareholders to not focus on book value per share.[1]<\/a><\/sup><\/p>\n

Buffett pointed out that Berkshire’s investments in Coca-Cola and American Express, which were made almost 30 years ago, would yield over $1 billion in dividends in 2022.[2]<\/a><\/sup> Upon finishing construction of those positions in 1994 and 1995, the yearly dividends paid were only $75 million and $41 million, respectively.[3]<\/a><\/sup> In 2021, there were 128 companies in the S&P 500 that earned more than $3 billion in profits \u2014 and Berkshire was the largest shareholder in 8 of these businesses: American Express (AXP), Bank of America (BAC), Chevron (CVX), Coca-Cola (KO), HP Inc. (HPQ), Moody\u2019s (MCO), Occidental Petroleum (OXY), and Paramount Global (PARA).[4]<\/a><\/sup><\/p>\n

In the letter, Buffett reminded readers that Berkshire had paid $32 billion in corporate taxes over the last 10 years, which was equal to 0.1% of the total federal taxes collected during that period, to show that the company was doing its share.[5]<\/a><\/sup> He said that “At Berkshire we hope and expect to pay much more in taxes during the next decade. We owe the country no less: America\u2019s dynamism has made a huge contribution to whatever success Berkshire has achieved \u2014 a contribution Berkshire will always need.”[3]<\/a><\/sup><\/p>\n

Berkshire posted a loss of $22.82 billion for 2022 and a 54% decline in fourth-quarter income.[6]<\/a><\/sup> Operating earnings, which is Buffett\u2019s preferred figure to measure the company\u2019s growth as it is adjusted to remove net capital gains or losses during the year, was $30.79 billion, 12.2% above 2021\u2019s figure.[5]<\/a><\/sup><\/p>\n

0. <\/span>“Invest Like Warren Buffett With These ETFs” Yahoo! Voices, 23 Feb. 2023, https:\/\/www.yahoo.com\/now\/invest-warren-buffett-etfs-130001789.html<\/a><\/a><\/p>\n

1. <\/span>“Warren Buffett’s letter to shareholders, Berkshire Hathaway’s Q4 earnings (NYSE:BRK.A)” Seeking Alpha, 24 Feb. 2023, https:\/\/seekingalpha.com\/news\/3939312-warren-buffetts-letter-to-shareholders-berkshire-hathaways-q4-results-on-tap<\/a><\/a><\/p>\n

2. <\/span>“Warren Buffett’s Berkshire Hathaway is the largest investor in these 8 stocks” MarketWatch, 25 Feb. 2023, https:\/\/www.marketwatch.com\/story\/warren-buffets-berkshire-hathaway-is-the-largest-investor-in-these-8-stocks-1eb967c8<\/a><\/a><\/p>\n

3. <\/span>“Warren Buffett touts key bets, defends taxes, buybacks in annual letter” Markets Insider, 25 Feb. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/warren-buffett-annual-shareholder-letter-coke-amex-buybacks-taxes-earnings-2023-2<\/a><\/a><\/p>\n

4. <\/span>“Berkshire Hathaway Inc. 2022 Shareholder Letter” Seeking Alpha, 25 Feb. 2023, https:\/\/seekingalpha.com\/article\/4581997-berkshire-hathaway-inc-2022-shareholder-letter<\/a><\/a><\/p>\n

5. <\/span>“Highlights from Berkshire Hathaway’s annual report and Warren Buffett’s letter By Investing.com” Investing.com, 25 Feb. 2023, https:\/\/www.investing.com\/news\/stock-market-news\/highlights-from-berkshire-hathaways-annual-report-and-warren-buffetts-letter-3014640<\/a><\/a><\/p>\n

6. <\/span>“Warren Buffett Letter To Shareholders: Berkshire Hathaway Posts Losses \u2014 But Remains Optimistic” Forbes, 25 Feb. 2023, https:\/\/www.forbes.com\/sites\/tylerroush\/2023\/02\/25\/warren-buffett-letter-to-shareholders-berkshire-hathaway-sees-major-losses—but-remains-optimistic\/<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":1436,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1437"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=1437"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1437\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/1436"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=1437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=1437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=1437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}