Berkshire Hathaway stock rose 4% last year, while the S&P 500 (including dividends) fell 18%. Berkshire has not always been a storm port, but it has always weathered storms by focusing on what matters most: free cash flow, profitability, diversification and quality of operations. This is how a conglomerate with just a few dozen employees in a home office can invest in hundreds of companies with thousands of employees and survive half a century (and hopefully beyond).
As a longtime Berkshire shareholder, I am pleased to receive and share this year’s letter from our Chairman, Warren Buffett.