In his eagerly awaited annual letter to shareholders, Warren Buffett,
CEO of Berkshire Hathaway, offered a bullish report on his company's
performance last year but steered clear of overt political chatter while
notably praising "ambitious immigrants" for helping create the nation's
wealth.
In 2016, Berkshire's net worth grew $27.5 billion, or 10.7%, to $172,108 per Class A equivalent share. The "
Oracle of Omaha"
in his folksy, wide-ranging letter released Saturday, emphasized the
value of investing in a diversified collection of companies rather than
debt securities, and remained an optimist, often thanking partner and
Berkshire's Vice Chairman
Charlie Munger for keeping him on the straight and narrow.
"Charlie
and I have no magic plan to add earnings except to dream big and to be
prepared mentally to act fast when opportunities present themselves," he
told shareholders. "Every decade or so, dark clouds will fill the
economic skies, and they will briefly rain gold. When downpours of that
sort occur, it's imperative that we rush outdoors carrying washtubs, not
teaspoons. And that we will do."
Buffett, who backed
Hillary Clinton
in the presidential election, steered clear of political references, in
marked contrast to last year's letter in which he said "candidates
can't stop talking about our country's problems." He did, however,
repeat an observation that he has frequently made in his report, noting
that America's build-up of wealth may be interrupted for short periods,
but will not be stopped. "Babies born in America today are the luckiest
crop in history," he said.
Buffett also weighed in on the sensitive issue of immigrants, however obliquely.
"Our
efforts to materially increase the normalized earnings of Berkshire
will be aided — as they have been throughout our managerial tenure — by
America's economic dynamism," he noted. "One word sums up our country's
achievements: miraculous. From a standing start 240 years ago — a span
of time less than triple my days on earth — Americans have combined
human ingenuity, a market system, a tide of talented and ambitious
immigrants, and the rule of law to deliver abundance beyond any dreams
of our forefathers."
