NEW YORK (US) – It appears that Warren Buffett’s enthusiasm for the future of the US and his firm Berkshire Hathaway Inc has not gone down one bit in the pandemic crisis.
In his annual letter to investors, Buffett assured that he and his successors would be careful guardians of their money at Berkshire where “the passage of time” and “an inner calm” would help serve them well.
Despite the slashing of more than 31,000 jobs from Berkshire’s workforce, Buffett has remained optimistic, buying back a record $24.7 billion of its stock in 2020.
He also praised the ability of the economy to endure “severe interruptions” and enjoy “breathtaking” progress.
“Our unwavering conclusion: Never bet against America,” he said.
Tom Russo, a partner at Gardner, Russo & Gardner in Lancaster, Pennsylvania and longtime Berkshire investor, said: “He’s a deep believer in his company and the country.”
The letter comes as a welcome break from an uncharacteristic silence for the 90-year-old who remained invisible to the public ever since the annual meeting of Berkshire last May.
While mentioning familiar themes such as Wall Street bankers’ greed for dealmaking fees that benefit them more than firms they represent, he did not dwell on the pandemic, which caused so many jobs to be slashed in the company.
He also did not address recent social upheavals or the divisive political environment that some companies now address more directly.
“The letter highlighted the innovation and values that have become the backbone of America, and that’s perfectly acceptable,” said Cathy Seifert, an analyst at CFRA Research with a “hold” rating on Berkshire.
“Given the reverence that investors have for him, the letter was striking for what it omitted,” she added. “A new generation of investors demands a degree of social awareness, and that companies like Berkshire set out their beliefs, standards and goals.”
Buffett also signaled a long-term commitment to Apple Inc, where Berkshire ended 2020 with $120.4 billion of stock despite recently selling several billion dollars more.
He called Apple and the BNSF railroad Berkshire’s most valuable assets – “it’s pretty much a toss-up” – other than its insurance operations, and ahead of Berkshire Hathaway Energy. “The family jewels,” he called those four investments.