A $168 billion cash pile and a 4,400,000% return: salient features of Warren Buffett’s letter

Berkshire Hathaway Inc., led by seasoned investor Warren Buffett, has revealed that its cash reserves have risen to a historic level. Buffett voiced irritation about the lack of noteworthy deals that have the potential to provide substantial returns.
During the fourth quarter, the conglomerate’s cash reserves reached an all-time high of $167.6 billion despite difficulties in getting acquisitions at competitive prices.

The following are the salient features of Warren Buffett’s most recent letter to Berkshire Hathaway shareholders:
He emphasized that since taking over in 1965, Berkshire Hathaway’s performance has much surpassed that of the S&P 500, with a return of 4,400,000% as opposed to the S&P’s 31,000%, according to a Business Insider story.
The letter revealed that Berkshire Hathaway had surpassed the market worth of big firms like as Uber and Nike by amassing an astounding $168 billion in cash and short-term investments.
At the close of the year, Berkshire’s total net assets were valued at $561 billion, a 19% increase over the prior year and a record for an American business.
Buffett said in his letter, “There are still only a few companies in this country that can really make a difference at Berkshire, and they have been picked over by us and by others.”
With $354 billion in equities, large holdings of cash, and Treasury notes, Berkshire maintains a sizable portfolio despite difficulties in locating profitable investment opportunities.
The company’s investment income has increased dramatically in the last year, mostly due to higher interest rates, which resulted in interest and other investment revenues of almost $6.1 billion.
Because of the variety of businesses it owns, such as BNSF Railway, Geico insurance, and Dairy Queen restaurants, Berkshire’s financial performance are sometimes seen as a gauge of the state of the US economy.
Due to its varied portfolio, the company is also more susceptible to the negative effects of increasing interest rates, which may result in decreased demand from consumers and businesses.

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