
Summary
- Warren Buffett’s annual letter to Berkshire shareholders tells us less than ever about how the company is doing.
- The 10-K tells us some of Berkshire’s biggest operating companies like Geico and BNSF lost ground to competitors in 2022.
- The stock is around fair value by a sum of the parts analysis and by price/book ratio compared to historical levels.
What Happened to the Letter?
Warren Buffett’s annual letter to Berkshire Hathaway’s (NYSE:BRK.A) (NYSE:BRK.B) shareholders has been an eagerly awaited item for investors who get up on a Saturday morning in late February to read it hot off the “presses”. Buffett treats Berkshire owners like “partners” and wrote the letters as if he were giving a business update of the past year and filling them in on his investing philosophy. In the 1950’s and 1960’s, when he ran an actual partnership prior to taking over Berkshire, such letters were the main way for limited partners to evaluate the business and decide if they want to remain on board. As a publicly traded corporation, Berkshire now has to file 10-K and 10-Q reports with the SEC where any interested person can get detailed information on business performance.
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