Warren Buffett comments, “ This float has cost us less than nothing. Berkshire’s GAAP earning or net worth does not reflect the long-term investment value. Premiums are investable assets that typically exceed insurance costs and losses, but not always. Like other insurers, portfolio managers invest the premiums paid by customers in securities. They have unique characteristics that allow them to enjoy $147 billion of insurance “investing float” at the end of 2021. The first giant is Berkshire’s 100% ownership of its insurance companies, managed by Ajit Jain, which provide products that positively perform in economic growth and inflation. Berkshire’s Four Giants Highlights The Company’s Diversified Assets, Growth, And Value Property And Casualty Operations And Its Insurance “Float” 8 Epic Lessons From Warren Buffett’s 2022 Letter To Shareholdersġ. Buffett and Munger are American treasures. His writings, iconic quotes, and presentations provide refreshing financial wisdom in his quaint small-town voice. I am an avid reader of Warren Buffett’s letters going back years (not to the 1960s!), as a business student, equity analyst, shareholder, investor, and finally, as a college professor seeking personal finance lessons for my students. I am not writing about quarterly results as my days as an equity analyst are gone. They are still having too much fun.īerkshire’s shares were up a healthy 29.6% in 2021, slightly above the S&P 500’s growth of 28.7%, reversing the prior two years’ underperformance. The letter dispels any notion of Warren Buffett at age 92 and Charlie Munger at 98 retiring any time soon. In the 2022 annual letter to shareholders, Warren Buffett’s writing feels like he is speaking directly to you, the individual investor, to understand his stalwart company, Berkshire Hathaway. Buffett and Munger do not suffer from a love affair with Wall Street, my home, before turning to teach college students. Since 1965, Buffett remains with his partner, friend, and Vice Chairman Charlie Munger at the helm as CEO.īuffett is always ready to vocalize his criticism aimed at company managements who use financial engineering to prop up earnings and their stocks more than is acceptable. Warren Buffett and Charlie Munger began working together at a grocery store owned by Buffett’s grandfather in 1942. This year’s message reminds us that the company’s well-positioned businesses reflect the economy, can withstand higher inflation, and pay a lot of taxes. Here is our analysis of last year’s letter. Many of Buffett’s legendary quotes come from these letters filled with integrity, sardonic humor, and corniness. It is always a pleasure to read and analyze Warren Buffett’s annual letter to Berkshire Hathaway shareholders.īuffett’s letter is shorter than usual but remains upbeat, witty, and educational. ' xlink:href='# flipboard '> Share on Flip it

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