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4,400,000% return and a $168 billion cash pile: Key points from Warren Buffett’s letter | India Business News – Times of India

Warren Buffett’s Berkshire Hathaway Inc has announced that its cash reserves has reached an unprecedented level, as the veteran investor expressed his frustration over the scarcity of significant transactions that could potentially lead to remarkable gains.
The conglomerate’s cache of cash climbed to an all-time high of $167.6 billion during the fourth quarter, as it faced challenges in securing attractively priced deals.
Here are some key points from Warren Buffett’s latest communication to Berkshire Hathaway shareholders:
He highlighted that Berkshire Hathaway’s performance has significantly outpaced the S&P 500, with a return of 4,400,000% compared to the S&P’s 31,000% since he took over in 1965, a Business Insider report said.
The letter noted that Berkshire Hathaway has amassed a staggering $168 billion in cash and short-term investments, surpassing the market value of major corporations like Uber and Nike.
The total net assets of Berkshire at the end of the year were reported at $561 billion, marking a 19% growth from the previous year and setting a record for an American company.
“There remain only a handful of companies in this country capable of truly moving the needle at Berkshire, and they have been endlessly picked over by us and by others,” Buffett said in his letter.
Despite challenges in finding valuable investment deals, Berkshire maintains a substantial portfolio, with $354 billion in stocks and significant holdings in cash and Treasury bills.
The company has seen a dramatic increase in investment income, attributed mainly to the rising interest rates, leading to approximately $6.1 billion in interest and other investment revenues last year.
Berkshire’s financial results are often viewed as a barometer for the health of the US economy due to the broad spectrum of its enterprises — including BNSF railway, Geico insurance, and Dairy Queen restaurants.
This diverse portfolio also renders the firm highly vulnerable to the impacts of rising interest rates, which can reduce consumer and business demand.
(With inputs from agencies)

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