The Warren Buffett Letter – Berkshire Hathaway’s Latest Annual Report
Warren Buffett’s annual report to Berkshire Hathaway (BRK.A, BRK.B) shareholders was released on Saturday (2/23/2019). As we expected, there was a lot of very useful information for investors in Buffett’s letter. The full report can be seen here. But we’ll try to break it down a bit more below.
- Berkshire Hathaway’s investment in Apple (AAPL) was worth $40.27 billion at year end 2018.
- Investment in Coca-Cola (KO) was worth $18.94 billion at year end 2018.
- Investment in American Express (AXP) was worth $14.45 billion at year end 2018. It owns a full 17.9% of American Express.
- Investment in JPMorgan Chase (JPM) was worth $4.94 billion at year end 2018.
- Investment in Goldman Sachs (GS) was worth $3.13 billion at year end 2018.
- Berkshire Hathaway’s investments earn profits without employing excessive levels of debt.
- The company suffered a $25.4 billion 4th-quarter loss because of a massive drop in the value of several of its stock investments when the market tanked late last year.
- Berkshire Hathaway’s equity investments totaled $172.75 billion in market value at year end 2018, up from $170.54 billion at the end of 2017.
- Buffett acknowledged a $3 billion write-off in its Kraft-Heinz (KHC) stake. Berkshire Hathaway owns more than 26% of the company’s shares, and took a severe hit when the stock crashed this past week.
- Overall, Buffett sees prices for businesses as “sky-high” and the market as expensive.
Warren Buffett’s Berkshire Hathaway Holdings (Year End 2018)
Here’s perhaps the most important section of the annual report – the holdings as of the end of 2018:
IMPORTANT: The information above should not be construed as investment advice and should not be considered as a solicitation to buy or sell securities. Past performance is not indicative of future results. Trading and investing in the financial markets involves substantial risk of loss, and may not be suitable for all investors.
Disclosure: At the time of this article’s publication, we have no position in any security or trade/investment mentioned, nor do we have any business relationship with any company whose stock may be mentioned.
Senior Market Analyst at The Technicals
A veteran global macro trader/analyst, Bart focuses on major market moves in currencies, commodities, fixed income, and global equity indexes. Bart stresses inter-market correlations and dynamics while keeping a close eye on risk. He has published countless market analysis pieces and has been a guest expert for a variety of major financial media. Contact Bart