General Category > Berkshire Hathaway

2019 Annual Letter Out

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vinod1:
https://www.berkshirehathaway.com/2019ar/2019ar.pdf

Vinod

scorpioncapital:
Interesting in 2015 was 30 pages long 2018 and 2019 14 pages and 2017 16 pages. Any clues in the length ?

longinvestor:
Hmmm..

Shareholders having at least $20 million in value of A or B shares and an inclination to sell shares to Berkshire may wish to have their broker contact Berkshire’s Mark Millard at 402-346-1400. We request that you phone Mark between 8:00-8:30 a.m. or 3:00-3:30 p.m. Central Time, calling only if you are ready to sell.

Jurgis:

--- Quote ---Our total net income in 2019 from the non-insurance businesses we control amounted to $17.7 billion, an
increase of 3% from the $17.2 billion this group earned in 2018. Acquisitions and dispositions had almost no net effect
on these results.
--- End quote ---

Don't look for earnings growth in wholly owned business segment...


Nothing said about Kraft Heinz in letter. In AR, there's this:


--- Quote ---As of December 31, 2019, the carrying value of our investment in Kraft Heinz exceeded the fair value based on the quoted market
price by $3.3 billion (24%). In light of that fact, we evaluated our investment in Kraft Heinz for impairment. We utilize no bright-line
tests in such evaluations. Based on the available facts and information regarding the operating results of Kraft Heinz, our ability and
intent to hold the investment until recovery, the relative amount of the decline, and the length of time that fair value was less than
carrying value, we concluded that recognition of an impairment loss in earnings was not required. However, we will continue to
monitor this investment and it is possible that an impairment loss will be recorded in earnings in a future period based on changes in
facts and circumstances or intentions.
--- End quote ---

bizaro86:

--- Quote from: Jurgis on February 22, 2020, 08:39:26 AM ---
--- Quote ---Our total net income in 2019 from the non-insurance businesses we control amounted to $17.7 billion, an
increase of 3% from the $17.2 billion this group earned in 2018. Acquisitions and dispositions had almost no net effect
on these results.
--- End quote ---

Don't look for earnings growth in wholly owned business segment...


--- End quote ---

Hard to square this with the enthusiasm for spending much more on capex than the depreciation charge. Maybe there is a lag on those investments, but it seems at least superficially concerning to have minimal organic growth during a strong economic expansion when spending significant capex in excess of d&a.

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