Thread by @LnprCapital

Warren Buffett's annual letter 2021
"TAKEAWAYS"

Whatever our form of ownership, our goal is to have meaningful investments in businesses with both durable
economic advantages and a first-class CEO.
1/12

We own stocks based upon our expectations
about their long-term business performance and not because we view them as vehicles for timely market moves.

Charlie and I are not stock-pickers; we are business-pickers.
2/12

I make many mistakes.

Consequently, our extensive collection of businesses includes some enterprises that
have truly extraordinary economics, many others that enjoy good economic characteristics, and a few that are
marginal.
3/12

Advantage of our common-stock segment is that – on occasion – it becomes easy to buy pieces of
wonderful businesses at wonderful prices.
4/12

Many people perceive Berkshire as a large and somewhat strange collection of financial assets.
Berkshire owns and operates more U.S.-based “infrastructure” assets – classified on our balance sheet as
property, plant and equipment.
5/12

At yearend, domestic infrastructure assets were carried on Berkshire’s balance sheet at "$158 billion".
That number increased last year and will continue to increase.
6/12

In 2021, we paid
"$3.3 billion" while the U.S. Treasury reported total corporate income-tax receipts of "$402 billion".
7/12

BERKSHIRE'S FOUR GIANTS:

~~Leading this list is our cluster of "Insurers". Berkshire has become the world leader in
insurance “float”.
Total float has grown from $19 million when we entered the
insurance business to $147 billion.
8/12

~~Apple – our runner-up Giant as measured by its yearend market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier.
9/12

~~BNSF, third Giant, continues to be the number one artery of American commerce, which makes it an
indispensable asset for America as well as for Berkshire

BNSF had record earnings of $6 billion in 2021.
10/12

~~BHE, final Giant, earned a record $4 billion in 2021. That’s up more than 30-fold from the $122 million
earned in 2000, the year that Berkshire first purchased a BHE stake. Now, Berkshire owns 91.1% of the
company.
11/12

Berkshire’s balance sheet includes $144 billion of cash and cash equivalents

Charlie and I have pledged that Berkshire will always
hold more than $30 billion of cash and equivalents

We repurchased 9% of the shares for a total
cost of $51.7 billion.
12/12