Buffett’s 2015 annual letter to shareholders

Warren Buffett has released his 2015 annual letter to Berkshire Hathaway shareholders, with points of interest including the operating results from the ‘Powerhouse Five’, succession planning, and the prospects for more big deals. As Buffett has invested in more capital-intensive businesses to help absorb Berkshire’s $18bn of annual free cash flow, Berkshire now owns what Buffett calls the Powerhouse Five, consisting of BNSF Railway, Berkshire Hathaway Energy, Marmon, Lubrizol and IMC. At 85 years young, Buffett is letting his key investing appointments Ted Weschler and Todd Combs run their own race. Buffett was quiet as usual about his potential replacement(s). Buffett doesn’t share other’s concerns with 3G’s aggressive management style, and expects Berkshire will do many more deals with 3G over time. As mentioned in Berkshire’s 2014 letter, the next 10-20 years will see Berkshire’s earnings reach a level where management will not be able to reinvest at attractive rates of return. Unlike other CEO’s, Buffett provides everything you need to value the business. Read more: (VIEW LINK)