Warren Buffett’s annual letter to shareholders

On Saturday, Warren Buffett sent his annual letter to Berkshire Hathaway stockholders. For almost six decades, the 91-year-old investment legend has published the letter, which has become mandatory reading for investors all over the world.

Read the letter here.

The conglomerate’s operating profits soared in the fourth quarter and for the full year, as the conglomerate's companies jump-started following the global economic slump. In 2021, Chairman Warren Buffett raised his stake on a turnaround by purchasing a record number of Berkshire shares.

According to a press release issued Saturday, the company's operating earnings in the fourth quarter of 2021 were $7.285 billion, which included profits from the conglomerate's many industries like as insurance, railroads, and utilities. This is a 45 percent increase over the profit of $5.021 billion in the prior year.

In his annual shareholder letter, Buffett explained that he and Vice Chairman Charlie Munger have found little that "excites" them in terms of large purchases, which were previously their signature. Instead, the duo is increasingly deciding that stock repurchases are the best way to invest funds at this time.

“Charlie and I have endured similar cash-heavy positions from time to time in the past,” he said. “These periods are never pleasant; they are also never permanent. And, fortunately, we have had a mildly attractive alternative during 2020 and 2021 for deploying capital.”

Berkshire Hathaway's operating earnings for the year was $27.455 billion. That's a 25.2 percent increase above the $21.992 billion forecast for 2020.

The conglomerate spent $6.9 billion on stock repurchases in the fourth quarter, increasing the total amount spent on stock repurchases for 2021 to almost $27 billion. This is a new high, surpassing the $24.7 billion repurchased in 2020 while the epidemic raged. However, the rate of stock repurchases in the fourth quarter was slightly slower than the $7.6 billion in the third quarter.

Berkshire Hathaway's overall earnings for the quarter were $39.646 billion, reflecting the company's shifting equity interests. This is a 10% increase over the previous year's figure of $35.835 billion.