Warren Buffett has warned Berkshire Hathaway shareholders that the $905 billion company is unlikely to deliver “dramatic” growth in the coming years. The chairman of the holding wrote this in his annual message to shareholders.
In his view, there are few large companies left in the United States that can significantly influence Berkshire.
Buffett, 93, said it would be difficult for his successors to repeat the success of past deals such as the purchase of insurers Geico and National Indemnity or the BNSF railroad. There are almost no suitable investment targets outside the US, an investor writes
This problem has gotten worse in recent years. Despite the acquisition of Alleghany and other assets, Berkshire’s cash reserves continued to grow, reaching $168 billion. Competition for merger and acquisition deals increased, leaving many companies overvalued.
Buffett added that Berkshire should remain fiscally conservative and generate returns slightly above the market average. It is unrealistic to expect super profits as in the past.
Following the death of Vice Chairman Charlie Munger in 2023, Berkshire began a generational transition. Greg Abel, Ted Weschler and Todd Combs are set to lead the company after Buffett’s departure. Repeating his success will not be easy.
“Although I have long been the leader of the Berkshire construction team, Charlie should always be considered an architect. In the physical world, great buildings are associated with their architects, and those who poured the concrete or installed the windows are soon forgotten,” Buffett admitted.
Before that, it was known that Michael Burry, the hero of the movie “The Big Short”, had a prototype. made An unexpected bet on Chinese companies.
Previously Buffett invested to an unknown company.