I know it's Monday, but....
"Warren Buffett’s message to shareholders remains upbeat" by David Gelles, New York Times March 01, 2015
NEW YORK — Warren E. Buffett released his annual letter to shareholders Saturday, expounding on business, reflecting on his 50 years assembling one of the world’s largest companies, and adding to the growing tome of folk wisdom that has made him the rare beloved billionaire.
That really is an astonishing statement coming from the propaganda pre$$, considering how they have portrayed such rich moguls as wonderful human beings.
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The tone was relentlessly optimistic.
“In effect, the world is Berkshire’s oyster — a world offering us a range of opportunities far beyond those realistically open to most companies,” he wrote, discussing how Berkshire’s size gave it the capacity to invest in almost any new business.
Some of Buffett’s positions were predictable. He defended Berkshire Hathaway’s conglomerate structure, making the case for a collection of disparate businesses — from insurance companies to candy manufacturers — in an era when most companies are focused on doing one thing well. “If the conglomerate form is used judiciously, it is an ideal structure for maximizing long-term capital growth,” he wrote.
Never you mind the illegal trading.
He also brushed aside speculation that Berkshire should spin off some of its businesses.
“It’s possible, of course, that someday a spinoff or sale at Berkshire would be required by regulators,” Buffett said. “Berkshire carried out such a spinoff in 1979, when new regulations for bank holding companies forced us to divest a bank we owned in Rockford, Illinois.”
But that day is not here now. “Voluntary spinoffs, though, make no sense for us: We would lose control value, capital-allocation flexibility and, in some cases, important tax advantages,” Buffett continued.
Related: Breakfast Buffett
It's on you, Massachusetts taxpayers!
Buffett said the decision about whether to pay a dividend was at least 10 to 20 years away.
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"Speculation abounds on Warren Buffett’s successor
SEATTLE — Berkshire Hathaway Inc. shareholders are still guessing who will succeed 84-year-old billionaire CEO Warren Buffett. In his annual report, he said only that the board has the “right person.” But vice chairman Charles Munger, 91, provided fodder for speculation, highlighting Ajit Jain and Greg Abel as “world-leading” executives. Jain, 63, runs Berkshire’s reinsurance operation. Abel, 52, oversees the energy-utility business. Jain joined Berkshire in 1986 and has orchestrated deals tied to everything from hurricanes to asbestos liability. Abel’s rise is more recent and reflects a shift toward regulated, capital-intensive businesses like power companies. An accountant, Abel joined Berkshire when Buffett purchased the majority of an Iowa utility-holding company in 2000. Buffett said his successor will need the ability to “fight off the ABCs of business decay, which are arrogance, bureaucracy, and complacency.” He reiterated that when he steps down, his son Howard should become nonexecutive chairman. He’ll be a “safety-valve” if the next CEO isn’t up to the job, the billionaire wrote."
Were you able to chew down this bit of corporate governance?
