What to watch in Buffett’s annual Berkshire shareholder letter
February 28, 2013, 6:05 PM
It’s that time of year for die-hard investors.
Berkshire’s largest investments by current market value are Wells Fargo, Coca-Cola and IBM. The $86 billion-dollar portfolio has been undergoing change over the past year since Buffett handed more control of Berkshire’s stock investments to Todd Combs and Ted Weschler.
Here are some topics worth watching:
* Does Buffett, 82, finally name his successor as CEO of Berkshire and a date when he plans to step aside?
For the first time last year, Buffett said in his letter he had an unnamed person lined up. Ajit Jain, who runs Berkshire’s reinsurance business, is seen as a leading candidate.
* What Berkshire plans to do with all the cash on its books.
As of Sept. 30, Berkshire had a cash stockpile of $47.8 billion. But lately Buffett has been frustrated in his attempt to deploy it via mega deals. One thought is that Berkshire will pay a dividend at some point.
* The size of the stock portfolios of Combs and Weschler and how they are performing.
* Health. Last year Buffett said he was in “excellent health.” But how long does he plan on holding onto the tri-roles of chairman, CEO and chief investment officer?
* The state of Berkshire’s many business units and Buffett’s investment blunders.
– Matt Andrejczak
- Getty Images
Warren Buffett’s annual shareholder letter is due
out Friday afternoon along with Berkshire Hathaway’s
/quotes/zigman/583979 /quotes/nls/brk.b BRK.B
-0.91%
/quotes/zigman/219651 /quotes/nls/brk.a BRK.A
-0.51%annual
report.
Buffett took over Berkshire in 1965 and his yearly dispatch has long been a
must read for professional and amateur investors alike. In his annual letter,
Buffett distills a mix of straightforward investment and business advice laced
with a dose of folksy charm.Berkshire’s largest investments by current market value are Wells Fargo, Coca-Cola and IBM. The $86 billion-dollar portfolio has been undergoing change over the past year since Buffett handed more control of Berkshire’s stock investments to Todd Combs and Ted Weschler.
Here are some topics worth watching:
* Does Buffett, 82, finally name his successor as CEO of Berkshire and a date when he plans to step aside?
For the first time last year, Buffett said in his letter he had an unnamed person lined up. Ajit Jain, who runs Berkshire’s reinsurance business, is seen as a leading candidate.
* What Berkshire plans to do with all the cash on its books.
As of Sept. 30, Berkshire had a cash stockpile of $47.8 billion. But lately Buffett has been frustrated in his attempt to deploy it via mega deals. One thought is that Berkshire will pay a dividend at some point.
Berkshire did strike this month, teaming up with
Brazil’s 3G Capital to buy ketchup maker H.J. Heinz
/quotes/zigman/229153 /quotes/nls/hnz HNZ
+0.04%for $23
billion. Buffett also has been betting on newspapers lately, scooping up the
Tulsa World, his hometown Omaha World-Herald and Media General, which controls
63 daily and weekly newspapers.
* The U.S. stock market is near record highs. Buffett’s thoughts on stocks
versus other asset classes such as gold and bonds.* The size of the stock portfolios of Combs and Weschler and how they are performing.
* Health. Last year Buffett said he was in “excellent health.” But how long does he plan on holding onto the tri-roles of chairman, CEO and chief investment officer?
* The state of Berkshire’s many business units and Buffett’s investment blunders.
– Matt Andrejczak
Follow me on Twitter @MarketwatchMatt
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Wells Fargo. People do not like Wells Fargo, so I guess that is the Peter
Principle of buying Wells Fargo. What an insipid lot of condescending folk they
are in the branches. Ick. But what is a customer to do--they are forced to use
the bank that is there.
HmmmWe have the sequester and Mr Buffets letter coming out, weighing in on
the market same day.If Mr Buffet's letter says what I think it will, we'll see a
double whammy manana!OUCH!
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