Warren Buffett's 2024 Annual Letter to Shareholders
Key Takeaways
- Berkshire Hathaway had a successful year in 2023, with operating earnings reaching a record $30.8 billion.
- Buffett remains optimistic about the long-term prospects of the U.S. economy.
- He urges shareholders to focus on the intrinsic value of businesses rather than short-term market fluctuations.
A Letter from Warren Buffett
To the Shareholders of Berkshire Hathaway Inc.:
Charlie Munger, my long-time partner, and I have the job of managing the savings of a great number of individuals. We take this responsibility very seriously, and we believe that our first duty is to preserve and enhance the purchasing power of their savings over time. We believe that the best way to do this is to invest in businesses that we believe have a sustainable competitive advantage and that are run by honest and capable people. We also believe that it is important to be patient and to avoid making emotional decisions.
The past year has been a challenging one for many investors. The stock market has been volatile, and interest rates have risen. However, Berkshire Hathaway has performed well during this period. Our operating earnings reached a record $30.8 billion in 2023, and our book value per share increased by 10.2%. We also made significant progress in growing our businesses. We acquired several new companies, including Alleghany Corporation and Pilot Travel Centers, and we expanded our existing businesses through organic growth and acquisitions.
I remain optimistic about the long-term prospects of the U.S. economy. The country has a long history of overcoming challenges, and I believe that we will continue to do so in the future. I also believe that Berkshire Hathaway is well-positioned to succeed in any economic environment. We have a diverse portfolio of businesses that generate strong cash flow, and we have a strong balance sheet. We are also patient investors, and we are willing to wait for the right opportunities to invest. I urge you to focus on the intrinsic value of our businesses rather than short-term market fluctuations. I believe that over time, the intrinsic value of our businesses will be reflected in the market price of our stock.
Thank you for your continued trust and support.
Sincerely,
Warren Buffett
February 24, 2024
For shareholders and others who are interested, a book that compiles the full unedited versions of each of Warren Buffett's letters to shareholders between 1965 and is available for purchase here.
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