2024 Q4 and Annual Report

[backtothebeach]

It's been rather quiet around Berkshire, I wonder if this annual report might bring some bombshell announcement, like Warren retiring from CEO while still being chief capital allocator. Hopefully not and his recent comments about getting slower were just modesty.

 

Looking forward to his comments about the record amount of cash. Hope he elaborates.

[Parsad]

Not likely, but still possible.  Maybe that's why he's built up the cash war chest to buy back shares if the stock falls on the news.  Cheers!

[John Hjorth]

23 hours ago, backtothebeach said:

It's been rather quiet around Berkshire, I wonder if this annual report might bring some bombshell announcement, like Warren retiring from CEO while still being chief capital allocator. Hopefully not and his recent comments about getting slower were just modesty.

 

Looking forward to his comments about the record amount of cash. Hope he elaborates.

 

I share your personal sentiment here, @backtothebeach,

 

No real news announced from Berkshire since in January 2024 about the Flying Pilot J acquisition settlement. *sigh*

 

*Holding my head up, so I don't drop my forehead on the 'sell' button on the keyboard, out of pure boredom*

Edited yesterday at 02:29 PM by John Hjorth

[73 Reds]

53 minutes ago, John Hjorth said:

 

I share your personal sentiment here, @backtothebeach,

 

No real news announced from Berkshire since in January 2024 about the Flying Pilot J acquisition settlement. *sigh*

 

*Holding my head up, so I don't drop my forehead on the 'sell' button on the keyboard, out of pure boredom*

Last year's letter to shareholders was so downtrodden that it is no surprise that in the year that passed there has been little in the way of news to report.  I am hopeful that Buffett's letter this year will assume a more positive tone.  

[John Hjorth]

20 minutes ago, 73 Reds said:

Last year's letter to shareholders was so downtrodden that it is no surprise that in the year that passed there has been little in the way of news to report.  I am hopeful that Buffett's letter this year will assume a more positive tone.  

 

+1. Intesting stance. Thank you.

[gfp]

I re-read last year's annual letter last night and, wow, I had forgotten just how downbeat it was.  So much for tap-dancing to work!

 

 

[jbwent63]

The last few have been less than thrilling, in part I think due to the large cash warchest that has been accumulated with few interesting investments being made (aside from Pilot and Allegheny) in the past few years.

 

A roadmap for the use of the cash (if any other than a shield against volatility) would be useful as shareholders.

 

Even though the past few years have been less exciting, I know, along with many on this board, I will be hitting the refresh button at the appointed minute to get access to it the moment it is available. Happy reading!

[Munger_Disciple]

11 hours ago, gfp said:

I re-read last year's annual letter last night and, wow, I had forgotten just how downbeat it was.  So much for tap-dancing to work!

 

 

 

The thing the surprised me most about the 2023 AR was how negative was Buffett about BHE (Berkshire can sustain financial surprises but we will not knowingly throw good money after bad) and to a lesser extent about BNSF.

 

Just a couple of years earlier, he said this in the 2021 AR: In truth, Berkshire owns and operates more U.S.-based “infrastructure” assets – classified on our balance sheet as property, plant and equipment – than are owned and operated by any other American corporation. That supremacy has never been our goal. It has, however, become a fact. At yearend, those domestic infrastructure assets were carried on Berkshire’s balance sheet at $158 billion. That number increased last year and will continue to increase. Berkshire always will be building.

 

That's quite a turn of events in just 2 years. It seems Pacificorp was slow to recognize the losses from 2020 wild fires; that's probably why it has a new CEO. 

Edited 17 hours ago by Munger_Disciple

[winjitsu]

Really not much to talk about from the letter. Get the feeling even more now that age is slowing down Buffett, especially with the comment about Greg writing the letters soon. Seems like there's alot less "life" in the words.

[Monsieur_dee]

Great read. Hopefully more questions are answered at the annual meeting.

[73 Reds]

8 minutes ago, winjitsu said:

Really not much to talk about from the letter. Get the feeling even more now that age is slowing down Buffett, especially with the comment about Greg writing the letters soon. Seems like there's alot less "life" in the words.

Much more positive than a year ago.  His distaste for payment of a dividend continues (Yay!).  Still keeping a lot close to the vest.  Not sure why he shuns most foreign equities unless he believes nothing is cheap anywhere.  

[sleepydragon]

I noticed the letter in the annual report has more contents (and more interesting) than the “annual letter”. Was it like this for prior years or it’s a new thing? Wondering why is that.. 

[backtothebeach]

Q4 2024   BV per B

301.00

Cash and equivalents

321,432

(payable for treasuries deducted)

 

Operating Earnings

14,527

(insurance killing it)

 

no buybacks

 

No afternoon session at the Annual Meeting, instead a longer morning session with a break.

[longlake95]

Much more positive then last year. More commentary on Greg’s abilities and Warren’s confidence in him - nice to hear. I like to warning to government to use a steady hand (whether that happens is another question). I doesn’t bother me too much that the letter doesn’t have the detail of years ago. What else can he say? What I’d really like going forward is a letter from Greg, along side Warren’s, as the chief operating guy, on his views and more detail on BRK activities.

 

Thanks for the steady hand Warren. 

Edited 5 hours ago by longlake95

[gfp]

He certainly seemed pleased with Todd's work at GEICO.

 

[gfp]

Looks like consolidated cash and t-bills ended the year at $321.432 Billion.  There is a year-end payable for treasury bills again.

[John Hjorth]

1 hour ago, backtothebeach said:

... No afternoon session at the Annual Meeting, instead a longer morning session with a break.

 

Yes, and a natural, logical step, based on reality. It has now for many years been almost inhuman AGM conditions for Mr. Buffett and Mr. Munger, they are / were, after all - geriatrics, who should not suffer from loss of dignity, from publicly loosing steam and getting hit by fatigue. I don't recall which year, but Mr. Munger one year 'hit the wall' and got - visible - a bit drowsy.

 

Amazing how Mr. Buffett all those years just has been pulling through like just another Energizer Bunny.

Edited 5 hours ago by John Hjorth

[longlake95]

1 hour ago, John Hjorth said:

 

Yes, and a natural, logical step, based on reality. It has now for many years been almost inhuman AGM conditions for Mr. Buffett and Mr. Munger, they are / were, after all - geriatrics, who should not suffer from loss of dignity, from publicly loosing steam and getting hit by fatigue. I don't recall which year, but Mr. Munger one year 'hit the wall' and got - visible - a bit drowsy.

 

Amazing how Mr. Buffett all those years just has been pulling through like just another Energizer Bunny.

John, agreed, totally appropriate. Respectful and classy for BRK to adjust. 

Edited 4 hours ago by longlake95

[Charlie]

Berkshire Operating Earnings Rose 71% to $14.5 Billion in Fourth Quarter

 

https://www.barrons.com/articles/berkshire-earnings-rose-quarter-buffett-cash-insurance-964e733c?refsec=warren-buffett&mod=topics_warren-buffett

 

 

Cheers! 

[wescobrk]

Don’t forget there isn’t s movie so he is still taking questions for 4.5 hours.

prior years I think was 9-330 and 1 hour for lunch so it’s the same amount of time?

[winjitsu]

4 hours ago, 73 Reds said:

Much more positive than a year ago.  His distaste for payment of a dividend continues (Yay!).  Still keeping a lot close to the vest.  Not sure why he shuns most foreign equities unless he believes nothing is cheap anywhere.  

My feeling is a Buffett 2-5 years ago would have made comments (as he has in the past) on the GDP deficit, SPY P/E, potentially the political climate like he did around BHE last year. Perhaps a little more light on the Geico turn around (though who wants to talk about layoffs and raising prices). But get the feeling he doesn't want to stir the pot anymore. Don't blame him -- 94 is no spring chicken, and with the passing of Charlie, seems the feelings of passing the torch are accelerating.

 

I just hope Greg is as good of a writer as Buffett. I've been a big fan of Bezos, also an excellent writer, and there was quite a big step-down in quality with Jassy.

[crs223]

IIRC last year at the meeting Greg put California/Oregon on notice:  if BHE were not treated fairly, there would be no increase in capacity and power would just be cut off (during wind events).  My point being: it was not just Buffett with the “bad attitude”.

[crs223]

BRK diluted this year to buy the rest of BHE.  Does this mean Buffett thinks shares are trading above intrinsic value?

[Munger_Disciple]

13 minutes ago, crs223 said:

BRK diluted this year to buy the rest of BHE.  Does this mean Buffett thinks shares are trading above intrinsic value?

 

At a minimum, he thinks the shares are not trading at a reasonable discount to intrinsic value.

Edited 2 hours ago by Munger_Disciple

[Munger_Disciple]

• Ajit & insurance seemed to carry the day. Shoutout to Todd Combs @GEICO.
• Not much to write home about BHE & BNSF. 
• Warren loves the Japanese trading companies.
• Get the feeling Greg will be CEO pretty soon from Warren's comments.
• No buybacks & no dividends (yes!)
• Warren seemed to compare Greg to Charlie in terms of waiting patiently for opportunities & pouncing on them when he finds them. Good sign!
• Warning the govt not to debase the dollar by running huge fiscal deficits & use taxes wisely
• Three best decision of Warren's life: GEICO (business), Ajit (managerial) & Charlie (partner, advisor, friend)

Edited 1 hour ago by Munger_Disciple