Although Berkshire BRK. A BRK. B - 0.11% + 0.10% to $2.41 billion net income for the shareholders and the book value of the enterprise group, rose 14.4% in 2012, he thinks this is A "inferior" performance.
"For in the ninth time and years, increasing proportion of Berkshire's book value for less than the percentage of the S&P income (including dividend and price appreciation calculation)," wrote Mr Buffett, who for decades has been measured in terms of the overall performance of Berkshire, book value.
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Standard &poor's 500 stock index SPX + 0.23% to 16% last year, including share out bonus.
Buffett said another disappointment, he failed to complete the major acquisitions, avoid him in the recent years. "I sought a couple of elephants, but to hold the bag," he wrote.
Buffett said, Todd coombs and ted, wei shi le, who buffett to the ship, in the past two years deal with more Berkshire's stock selection, each beat S&P 500 index last year by double-digit profit margins.
The DirectTV DTV + 0.79%, is a stock, they are in their own portfolio.
"They left me in the dust," buffett said. "Todd and Ted is young, will manage the Berkshire large-scale investment portfolio after long [Berkshire vice President Charlie munger] I have left the site. You can rest easy, they take over."
Their reward, last year's performance: their regulatory capital scale increased to nearly $50 billion.
Buffett's annual letter has long been for professional and amateur investors must read, because its business investment and honest words. Learn more: warren buffett's "basic rule" for investment.
In his letter, buffett in Berkshire don't pay a dividend, although the company sitting on 4.69 billion dollars in cash reserves dollars reason. Observers want to know, if the dividend is in engineering since, buffett has been unable to discharge in a huge cash purchase.
Buffett in the letter pointed out that Berkshire, than to change its stock repurchase program standards in December of, the largest increase will pay 120% of the book value. The company had earlier said they would like to buy the book value of the shares as high as 110%. "It was proved to be not realistic," buffett said.
As for the dividend, buffett like them - other company, that is - including enterprise, Berkshire's investment. For such as, Berkshire harvest a $110 million dividend from the same period last year the company's four biggest stock investment - American express AXP + 0.35% Coca-Cola KO - 0.05%, : IBM IBM + 1.04%, Wells Fargo bank company WFC 0.88%. Learn more: warren buffett's dividend stock.
Buffett to Berkshire shareholders of the company to pay a dividend of cash reserves, the shares in the long-term value is harmful.
"He said," dividend collection policy on specific cash all the shareholders. He added that many shareholders, more willing to sell their stock part, create your own source of income, or have a long time span, so "should prefer to choose not to pay."
Dividend tax of inefficient, "buffett said. Every year, the cash dividend tax, he points out, and shareholder tax when it is sold.
Buffett made it clear that Berkshire shareholders should not expect him think Berkshire dividend.
"We will continue to adhere to the policy" as long as the assumption that the company can enlarge its book value and premium share price "seems to be reasonable command," buffett said.
"If the prospect of each factor deterioration have significant change," he added, "we will review our action."
Buffett has begun in 2013, a very promising description. Berkshire join forces with Brazil 3 g capital for 2.3 billion dollars to buy heinz ketchup producers HNZ + 0.06%.
"Therefore, it work." Buffett said. "Charlie and I once again put on our wild zoo clothing and restore our search the elephant".
 
 



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