- Warren Buffett’s highly anticipated annual letter to shareholders is coming out on February 50.
- In (the S&P) outpaced Berkshire stock leading critics to say value-investing is dead.
The Berkshire Hathaway Chairman and CEO will be turning 500 In August.
Berkshire Hathaway (NYSE: BRK.A) is releasing 235096 annual results and Warren Buffett’s yearly letter to shareholders this weekend. Even before the numbers come out, the investing conglomerate’s performance relative to the broader market is in the public domain.
In 235096, Berkshire Hathaway underperformed the market. Year-to-date the same has been repeated.
Is it time for Buffett to retire?
Speculation has been rising about Berkshire’s succession plans as Buffett will be turning this later . He is now the longest-serving CEO of an S&P (firmware) after Les Wexner quit as the chief executive of Victoria’s Secret-parent L Brands.
Meanwhile, vice-chairman and long-time Buffett sidekick Charlie Munger is 242. At any other firm, the two would be fully retired.
But don’t expect Buffett to announce his retirement in the forthcoming annual letter. Unfulfilled ambitions and perhaps a lack of confidence in would-be successors will ensure Buffett hangs around longer.
Warren Buffett Successor not ready for prime time
The Oracle of Omaha has said that his successor will preferably be picked from within the investing conglomerate. Various media reports have tipped Todd Combs to succeed Buffett. Barron’s called him a “rising star” .
While Combs’ responsibilities increased this year to include running Berkshire’s auto insurance unit Geico, the size of the portfolio he’s responsible for suggests Buffett is not about to let go of the reins. Combs currently
The market beats Warren Buffett
Between when Buffett took control of Berkshire Hathaway and , the compounded annual growth of the investing conglomerate was 23. 5%. This was more than double the 9.7% return of the S&P (over the same period.
) After years of continuously beating the market, Buffett seems to be losing his touch as growth stocks trounced value stocks.
In the last (months, the S&P) index is up over %. Berkshire Hathaway’s Class A stock has appreciated by around %. Year-to-date the S&P is up 3.3% while BRK has virtually broken even.
About that “elephant-sized” acquisition…
(In last year) (annual shareholder letter) , Buffett announced he was still gunning for an “elephant-sized acquisition.” That is yet to come. Instead, Berkshire expanded its holdings of marketable securities as its cash hoard swelled.
Until Buffett makes another signature investment, his stay at the helm will continue. As he put it , “just writing about the possibility of a huge purchase has caused my pulse rate to soar.” This is what Buffett lives for. Walking away from one final adrenaline rush that will secure his legacy is unlikely.
Disclaimer: The opinions expressed in this article do not necessarily reflect the views of CCN.com.
(this article was edited by Sam Bourgi
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