Always an interesting and easy read, Berkshire Hathaway published their 2018 shareholder letter, today (you can find it here) and here are a few highlights that I found interesting:
On the business model:
Berkshire has gradually morphed from a company whose assets are concentrated in marketable stocks into one whose major value resides in operating businesses.
On the value of share buybacks:
Berkshire’s holdings of American Express have remained unchanged over the past eight years. Meanwhile, our ownership increased from 12.6% to 17.9% because of repurchases made by the company.
On their common stock investments:
What we see in our holdings, rather, is an assembly of companies that we partly own and that, on a weighted basis, are earning about 20% on the net tangible equity capital required to run their businesses. These companies, also, earn their profits without employing excessive levels of debt.