Learning Investment09 - New York, Warren
Buffett re-released annual letter to shareholders of Berkshire Hathaway on
Saturday morning yesterday. This document is always issued annually and
document the most widely read because its contents have extensive knowledge,
funny and sometimes controversial.
This
is underlined by the seven things that Warren Buffett in the letter, as quoted
from Yahoo Finance, Sunday (28/02/2016):
1.
Berkshire had a good performance in 2015, despite the stock market is not so
good
In
2015 yesterday, the stock market is fairly flat industry. Berkshire shares fell
about 12 percent and is the worst decline since 2008.
But
Buffett focuses on the profit earned by the company in 2015 and which grew 6.4
percent, the benchmark he always used.
Earnings
were inscribed by the company below 13 percent, the average income that is
inscribed since the recession but exceed 1.4 percent returns posted by the S
& P 500 index with dividends into account.
Buffett
reiterated that Berkshire will buy back shares if the value is trading below
book value of 1.2 times. Currently the value of Berkshire shares trade at about
1.3 times book value.
Buffett's
annual letter also discussed business Berkshire menggurita in America and
increasingly global. An example is Berkshire's insurance businesses earn US $
4.9 billion in 2015, down from US $ 5.2 billion in 2014.
But
there are additional substantial funding to be invested by Berkshire-owned
insurance company. This is why the insurance business remains lucrative as farm
profits for Berkshire shareholders.
In
2015 also, the other Berkshire businesses such as energy, railways, financial
products, manufacturing and retail are relatively profitable compared to
previous years.
2. US presidential candidate wrong
about the economy
Do
not expect to find a discussion of the world's oil, China, the exchange value
of money, as well as monetary policy in Buffet's letter. Buffet to emphasize that
the domestic economy is strong, despite the politicians think otherwise. This
year, Buffett suggests that investors will still find plenty of opportunities
for financial printing in a variety of industries.
"This
is an election year, candidates will not stop the problem of the country. As a
result of the negative comments they made, the American citizens believe that
their offspring would not be able to prosper as they once were. The thought is
certainly a big one. The babies born in the United States today are the
descendants of the lucky ones in history, "he wrote.
3. Climate change is a challenge
He
said that the insurance business will not be affected by climate change in the
near future. However, he believes that the threat of climate change to the
environment must be addressed with concrete action.
4. The terrorist attacks pose a
major threat
Buffet
can not deny that Berkshire faces major challenges are also faced by other
residents of the United States. The threat of terrorist attacks either nuclear,
biological and chemical weapons, as well as cyber attacks, becoming the biggest
danger facing.
5. Productivity is good for
society, but costly
Last
year, Buffett specifically discuss the solution of the unemployment-related
change in the paradigm of productivity. Currently, policies to improve
labor-intensive industries are considered wise.
6. Buffet appreciate the
technological advances
Although
appreciate the technological advances in helping everyday life, but the buffets
were not ready to play Tinder applications.
7. Meeting of shareholders of
Berkshire will be broadcast live by Yahoo Finance
As
has been previously announced, Yahoo Finance will host the Berkshire
shareholders meeting on April 30 this year. "Charlie and I decided to
enter the 21st century of this year's annual meeting will be broadcast live via
webcast." lid.