In his annual letter to investors, Warren Buffett dismissed fixed income as an investment, saying “bonds are not the place to be these days.” Revenue from the U.S. Treasury 10-year bond fell 94% from a yield of 15.8% in September 1981 to 0.93% at the end of 2020. Treasury yields have since jumped but remain low by measures historical.
“Income-based investors around the world – whether pension funds, insurance companies or retirees – face a bleak future,” the letter said.
However, Buffett ‘s commitment to the future of America and his company Berkshire Hathaway Inc has not diminished with the pandemic of coronavirus.
Buffett used his annual letter to investors to ensure that he and his successors were careful stewards of their money in Berkshire, where “spending time” and “calming in” would help. ”They are fine.
Despite last year ‘s disappearance of more than 31,000 jobs from Berkshire workers, Buffett maintained its trade hopes, buying back $ 24.7 billion of its stock in 2020 in a sign it believes which was not valued enough.
He also criticized the economy’s ability to enjoy “real break-ins” and “incredible” progress.
“Our unexpected decision: Never bet against America,” he said.
Warren Buffett’s 15-page annual letter to shareholders on Saturday highlighted the pandemic that hit the globe in 2020 just once: One of its furniture companies had to close for a time because of the virus , the billionaire noted on page nine.
Buffett similarly steered clear from politics, despite the controversial and controversial presidential election at the U.S. Capitol, and never encountered race or inequality even after protests and unrest going out in cities across the country last year. He also avoided succumbing to the competitive pressures of making contracts that faced his rival, Berkshire Hathaway Inc., a topic that often spread in the letters of the year. gone.
Meanwhile, Berkshire Hathaway Inc. in Apple Inc. has become so valuable that Warren Buffett sees it on an equal footing with the railroad explosive industry he spent a decade building.
Buffett has accumulated $ 120 billion worth of Apple stock since its conglomerate began buying at the end of 2016, while it only cost $ 31.1 billion building that share. That puts him among his top three most valuable assets, along with his insurers and BNSF, the American rail purchase he completed in 2010, he said in his annual letter Saturday.
Buffett has traditionally been away from technology stocks, saying he hasn’t invested in companies he didn’t understand. But Berkshire, with the help of investing agents including Todd Combs and Ted Weschler, has come around in recent years, adding shares in Amazon.com Inc., Snowflake Inc., and recently, amassing an $ 8.6 billion stake in Verizon Communications Inc.
“Berkshire came very late to Apple’s party and it has yet to work out,” Cathy Seifert, an analyst at CFRA Research, said in a phone interview. “I don’t know what it says more about – Apple ‘s resilience or Berkshire’ s making – when a well – known technology name is now seen as a valuable right within Berkshire. ”
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