America’s best days lie ahead: Warren Buffet

America’s best days lie ahead: Warren Buffet

Warren Buffet has given indication that Berkshire Hathaway will look forward to the more acquisitions in year 2014. The Oracle of Omaha expressed confidence in the US economy. Berkshire reported record $19.5 billion full year profit, higher by 31 percent compared to last year.

The book value per share increased to $134,973 after taxes, witnessing an increase of 18.2 percent. Market analysts were expecting Berkshire to post $18 billion in profit compared to $14.8 billion in 2012.

Berkshire Hathaway has stake in more than 80 companies. The optimistic tone of Warren Buffet would surely support the stock markets and the US economic recovery. Buffet said, “America’s best days lie ahead.”

Portfolio managers Todd Combs and Ted Weschler invest more than $7 billion individually at Berkshire Hathaway. Mr. Buffet praised the portfolio managers as their investments outperformed those chosen by Buffet. Buffet added that most of the equity managers found it difficult to perform better than S&P 500 but both Todd Combs and Ted Weschler have outperformed. However, 83-year old Buffet said that he will continue with Berkshire and has no plans to leave the company soon. He also informed shareholders that he looks forward to an interesting year and his next review would be his 50th year at Berkshire.

In his annual letter to Berkshire shareholders, Buffet said that American is going to witness much better times in near future. He added that the opportunity resides in America. The annual review letter is read by most of the investors, technical analysts and market experts.

In 2013, Berkshire has picked up stake in NV Energy and H. J. Heinz Geico. Warren Buffet’s company has given compounded annual return of 19.7% since 1965. In 2013, S&P gave returns of 32% while Berkshire book value increased by 18.2 percent.

Berkshire Hathaway has concentrated on keeping bigger share of its investment in less number of companies. Nearly 73 percent of the portfolio value of Berkshire remains invested in top five companies in the portfolio. Berkshire has sizable portfolio allocation to American Express, Coca-Cola, Wells Fargo and IBM. The ‘powerhouse five’ generated $10.8 billion pre-tax earnings in 2013.


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