1/ "In 2019, rising stock prices increased net unrealized gains by $53.7 billion, pushing GAAP earnings to the $81.4 billion reported at the beginning of this letter. Those market gyrations led to a crazy 1,900% increase in GAAP earnings!" Warren Buffett berkshirehathaway.com/letters/2019lt…
2/ "In what we might call the real world, as opposed to accounting-land, equity holdings averaged about $200B during the two years and the intrinsic value of stocks we own grew steadily and substantially throughout the period.Charlie and I urge you to focus on operating earnings"
3/ "Forecasting interest rates has never been our game and Charlie and I have no idea what rates will average over the next year, or 10 or 30 years. Pundits who opine on these subjects reveal, by that very behavior, far more about themselves than they reveal about the future."
4/ "But the combination of The American Tailwind, about which I wrote last year, and the compounding wonders described by Mr. Smith, will make equities the much better long-term choice for the individual who does not use borrowed money and who can control his or her emotions."
5/ "My will directs its executors and trustees ....not to sell any BRK shares. [They will]
each year distribute the [shares] to various foundations. Those foundations [must] deploy their grants promptly."
This creates a ~12 to 15 year BRK share sale process after WEB's death.
each year distribute the [shares] to various foundations. Those foundations [must] deploy their grants promptly."
This creates a ~12 to 15 year BRK share sale process after WEB's death.
6/ "Calculations of intrinsic value are far from precise. Consequently, neither of us feels any urgency to buy an estimated $1 of value for a very real 95 cents. In 2019, we spent $5 billion in repurchasing about 1% of the company."
7/ "BRK sent $3.6B to the US Treasury to pay its current income tax. The U.S. collected $243B from corporate income tax payments.
... rewards from these 10 companies, as well as those from our many other equity holdings will manifest themselves in a highly irregular manner"
... rewards from these 10 companies, as well as those from our many other equity holdings will manifest themselves in a highly irregular manner"
8/ "Berkshire retained nearly all of its earnings, the beneficiaries of that policy became not only the company’s shareholders but also the federal government. In most future years, we both hope and expect to send far larger sums to the Treasury."
