Warren Buffett Pays Tribute to Late Charlie Munger as Berkshire Reports Record Cash Reserves

Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, paid a tender tribute to his deceased longtime business associate, Charlie Munger, in this year's annual shareholder letter. Munger, who passed away last November at the age of 99, was remembered for his critical role in shaping the conglomerate, with Buffett recounting his contributions with high regard and deep affection.

A Dedication to Munger's Legacy

In a display of esteem, Buffett referred to Munger as the 'architect' of Berkshire, highlighting his influence on the company's success. Their partnership, which started back in 1959, was a cornerstone for Berkshire's growth, with Munger's insight deeply ingrained in its fabric. Despite his behind-the-scenes approach, Munger's impact as the vice-chairman since 1978 was unmistakable, with Buffett acknowledging Munger's mentor-like role in his life and career.

Succession and Berkshire's Future

The duo's legacy has also brought the issue of succession into the limelight. With Buffett at 93, the company has announced Greg Abel as the successor, ready to take Berkshire forward. Abel, who oversees the non-insurance side of the business, has Buffett's complete confidence to lead and enhance the company's operations in the future.

Financial Performance and Stock Movements

Berkshire Hathaway also shared its financial achievements with a notable rise in fourth-quarter operating earnings, a 28.8% increase compared to the year before. This growth extends to its annual operating income and net earnings, marking a strong recovery from the previous year's losses. Additionally, the conglomerate's insurance underwriting business exhibited a robust performance.

The report further revealed Berkshire's practice of stock repurchases and adjustments in their portfolio, including the selling of Apple and HP shares. Despite these moves, the company is recognized for its considerable holdings in major industries, commonly referred to as the 'four giants' by Buffett.

Berkshire's Cash Mountain and Speculations

A striking feature of the report is Berkshire's unprecedented cash reserve, reaching a record-breaking $167.6 billion. This leads to speculation among investors about possible acquisitions or strategic moves Buffett might undertake. The company's cash position and strategic decisions continually resonate through the markets, influencing perceptions and expectations.

Buffett, Munger, Berkshire