The chief strategist of BMO Capital Markets Investment, Brian Belski, explains if the decline in the market is something that investors should worry about earning money.
The president-director of Berkshire Hathaway, Warren Buffett, published his annual letter on Saturday, which presented the company record tax payments last year and urged the federal government to spend on wisely money .
Buffett recalled how, when he bought Berkshire Hathaway 60 years ago, his long -standing trading partner Charlie warned him that what was a large textile company was “directed to extinction”, like the ‘Indicates his inability to generate profits and pay taxes at time.
“The American treasure, from all places, had already received silent warnings from Berkshire’s fate,” he wrote. “In 1965, the company did not pay a penny of income tax, an embarrassment which had generally prevailed to the company for a decade. This type of economic behavior can be understandable for glamorous startups, but it is a flashing yellow light when it occurs in a venerable pillar of American industry. Berkshire was heading for the ash box. “”
“Fast advance of 60 years and imagine the surprise of the treasure when this same company – always operating under the name of Berkshire Hathaway – paid far More corporate income tax than the United States government had Never received from any business – even the titans of American technology who commanded market values in the billions of thousands“Written Buffett.
The annual letter from Warren Buffett to the shareholders of Berkshire Hathaway: Read here
Berkshire Hathaway, Warren Buffett, president of Berkshire Hathaway Payments. (Images J. Kempin / Getty / Getty Images)
“To be precise, Berkshire last year made four payments at the IRS which totaled $ 26.8 billion. This represents approximately 5% all American companies paid. (In addition, we have paid significant amounts for income tax to foreign governments and 44 states.) “
Buffett added that total income tax payments from the company to the US Treasury over time have reached a total of $ 101 billion and noted that the company paying only a dividend in the last 60 years has enabled the conglomerate to create its taxable tax base over time.
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The value investor, known to have long -term stocks, has also praised his main investments.
“We have a small percentage of a dozen very large and very profitable companies with names of households such as Apple, American Express, Coca-Cola and Moody’s. Many of these companies obtain very high yields on tangible equity Required for their operations for their operations, “he said.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| Aapl | Apple inc. | 245.55 | -0.28 | -0.11% |
| Axp | American Express CO. | 295.37 | -8.40 | -2.77% |
| Ko | COCA-COLA CO. | 71.39 | +1.34 | + 1.91% |
| Mco | Moody’s Corp. | 500.03 | -11.54 | -2.26% |
Buffett then discussed the value of capitalism, which, according to him, has faults and abuses which “in some respects are more flagrant than ever” but “can also do wonders unrivaled by other economic systems”.
“Admittedly, our country with its stammerings sometimes borrowed abroad to complete our own economies. But, simultaneously, we needed many Americans to save regularly, then needed these savers or other Americans to wisely deploy the Capital thus made available.
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“The American process has not Always pretty – Our country has forever had many scoundrels and promoters who seek to take advantage of those who wrongly trust them with their savings. But even with such embezzlement – which remains in force today – and also a large deployment of capital which has finally trained due to brutal competition or disruptive innovation, the economies of the Americans have provided a quantity and a quality production beyond the dreams of any colonist. “”
“From a base of only four million people – and despite an internal brutal war from the start, opposing an American to another – America changed the world in the blink of an eye with a celestial eye,” said writes Buffett.
Buffett urged the federal government to spend judiciously and ensure stable currency. (Photo by Kevin Dietsch / Getty Images / Getty Images)
He explained that in a “very The minor manner of “the shareholders of Berkshire participated in the American miracle by renouncing dividends. This was originally a” tiny, almost devoid of “reinvestment” wearing “over time.
“Berkshire’s activities now have an impact on all corners of our country. And we are not over. Companies die for many reasons, but, unlike the fate of humans, old age is not deadly .
“”HoweverAs Charlie and I have always recognized him, Berkshire would not have obtained his results in local parameters, except America, while America would have been all the success that it was so Berkshire had never existed . “”
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“So thank you, Uncle Sam. One day, your nieces and nephews in Berkshire hope to send you even more important payments than we have done in 2024. Pass it wisely. Take care of the many who, without fault of their in life. need Wisdom and vigilance on your part, “wrote Buffett.
