Deals
Buffett Extols Value of Stock Bets in a Year Without Big Deals
- Retained earnings from stockholdings are ‘of major importance’
- Annual letter also touches on succession, share repurchases
Dec. 23: Warren Buffett Can't Find a Takeover Target
This article is for subscribers only.
Warren Buffett sought to justify the importance of his $248 billion stock portfolio, saying the investments are more than just “dalliances” with the companies he takes stakes in.
The billionaire investor spent a portion of his annual shareholder letter, released Saturday, detailing how an accounting difference between his stock picks and his outright business takeovers creates a “standout omission” in Berkshire Hathaway Inc.’s financial results. The conglomerate’s equity investments will produce capital gains that are at least equal to Berkshire’s share of the individual companies’ retained earnings, Buffett argued.