annual letter to Berkshire Hathaway shareholders include pages in the stock market and where it is headed in recent years. This year? Silence.
FORTUNE – The Oracle of Omaha crystal ball must be covered in these days
‘annual letter from Warren Buffett Berkshire. Hathaway (BRKA ) Shareholders published on Saturday morning he says little about the stock market or the shares could be addressed. Buffett said, as he has done in the past, still in America, he believes. Berkshire has spent $ 11 billion in assets in 2013, Buffett is that 89% of this money was spent in the United States
“Even though we is to invest abroad, the vein chance in America,” Buffett wrote , the chairman and CEO of Berkshire. But it does not say whether the stocks are the best investment opportunity in America these days. Obviously have a company, the things that do buy Berkshire, is swell. There is a section, like Buffett and his partner Charlie Munger think to invest that a rel = “nofollow” title = <'annual letter from Warren Buffett: What can you learn from my real estate investments "target =" _blank "href = "http://finance.fortune.cnn.com/2014/02/24/warren-buffett-berkshire-letter/"> Fortune extract more earlier this week. Buffett cited two of its best investments, and both are in real estate.
Buffett has seen more years without commenting on the stock exchange or a prediction, if the shares are in the annual letter to Berkshire tip. But in recent years, Buffett has spent at least a portion of his letter to give an opinion on the market. Two years ago, Buffett spent three and a half pages to a detailed explanation of why he thought stocks were a much better investment, for example, gold or bonds. (See Warren Buffett: Why gold and bonds beat stocks.
) He also said he was bullish on U.S. real estate
. Last year, Buffett has devoted four paragraphs to the case of shares, and he said he thought the market would still “do well.” MORE: First, Buffett was beaten by the S & P 500 over five years. (But more than six wins.)
But a year ago, Warren Buffett seemed to sink enthusiasm for the market. He wrote that investors should expect setbacks on the market from time to time. If this is a message that could come in 2013, Buffett missed call. In 2013, the total return of the S & P 500 index was 32%.
Buffett, if the shares are cheap or expensive, is to compare the total value of shares is gross to gross domestic product, and he plays on this comparison a year ago. Last year, GDP grew by 1.9%. Inventories increased by almost 16 times. A year ago, collectively shares trade at a value of 133% of GDP. After gains in the last year, we are now at 154%. measure was higher – in 1999 peaked at 190% – but not too often. This does not mean inventories for a crash-line, but that does not mean that it is not much room to grow. Back in 2001, Buffett said investors who buy when the relationship of the value of the shares in the economy in the range of 70% to 80% should be good. This means that stocks should fall by 48% before we buy again in Buffett territory. to buy Although Buffett and his managers to find stocks. In 2013, Berkshire bought more shares of Wells Fargo (WFC
) and IBM (IBM
), two companies that are likely to increase when the economy and the rest of the market is good. All in all, Berkshire save $ 4700000000 in new funds in the stock market last year. Buffett is also nothing new in that year in respect of the Berkshire whether or when the management 83-year-old pulls would take back. The only area in which Buffett talks take place in the future, Berkshire comes at the end of the Annual Report and is almost word for word the same as a year ago, when it., In recent years The only difference is the number of employees in Berkshire. The time now is 330,745 against 288,000 a year ago. planning
Berkshire became a problem after Buffett announced in April 2011, who had been diagnosed with Stage 1 prostate cancer. Buffett went through the treatment of cancer, returned briefly after work, and took his heavy travel schedule normal. Buffett said, like last year, he has never felt better.
As he said in the past, Warren Buffett’s Berkshire plan to divide the work in two years, when he leaves the company. A person will be operating company, the CEO of Berkshire. Another person or two is responsible for managing the investment portfolio of Berkshire are left. Buffett said that the name of his successor may change, but he said he chose, which was to get these jobs if the company had to leave suddenly. But he and the board knows who these people are. It seems that the work of the investment is close to being locked up. A few years ago, Buffett turned Todd Combs and Ted Weschler-manager funds to help the portfolio of Berkshire. In the letter this year, Buffett says Combs and Weschler each manage more than 7 billion of Berkshire money $ . And both exceeded last year itself when Combs and Weschler not do the job, not only the market, but Buffett, at least it looks like they’re able to get a nice reference. MORE: Buffett’s Annual Letter: Learn from my real estate investments
for the operating labor, Ajit Jain, who runs the largest insurance unit of Berkshire, is considered by many as the favorite. This year, Buffett calls the spirit of Jain “a factory of ideas”, and said he has built a company that “no other insurance CEO came close to matching.” In addition, the benefits of national insurance Jain has more than quadrupled in 2013
Buffett said Greg Abel, MidAmerican utility of Berkshire runs, and Matt Rose, BNSF Railway of the heads together -. two other officers Berkshire, which are often spoken of possible successors – are “extraordinary leaders.” But they are grouped in the same sentence with another BNSF Executive Carl ice, which did not even mention last year.
means the Jain pulls ahead? Maybe, but only Buffett knows.