Buffett's Berkshire says quarterly profit rises 15 percent

Feb 26, 2017, 00:36

Your neighbor, the billionaire investor, brings a folksy charm to the complex world of finance in his yearly review of the world and the money that makes its gears spin.

The Annual Report will include Warren Buffett's annual letter to shareholders as well as information about Berkshire's financial position and results of operations.

Buffett will likely address other topics during a three-hour-long television appearance Monday on CNBC, but he still may leave some people wanting more. He said he estimates that wealthy investors who use high-priced advisers have wasted over $100 billion over the past decade.

"When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients", Buffett said in his annual letter to shareholders.

"Both large and small investors should stick with low-priced index funds", wrote Buffett, widely considered one of the world's best investors. Both sides picked a charity that would get at least $1 million.

The index fund is up 85.4 percent, Buffett said, while the hedge fund groups are up between 2.9 percent and 62.8 percent.

Berkshire generated $58.3 billion revenue in the quarter, up from $51.7 billion a year earlier. His annual letters are always well read because of his successful track record and his knack for explaining complicated subjects in simple terms.

Buffett also said the market system that has propelled USA economic growth for more than two centuries will continue unabated, echoing his optimism about the country where he amassed a fortune.

Berkshire itself has done far better, with its stock price gaining 20.8 percent per year since Buffett took over in 1965, dwarfing the Standard & Poor's 500's 9.7 percent gain, including dividends.

Berkshire Hathaway Inc's (BRKa.N) gain on its investment in Apple Inc. The firm more than doubled its holding in Apple.

Book value per Class A share, reflecting assets minus liabilities and which Buffett calls a good measure of Berkshire's intrinsic worth, rose 11 percent to $172,108.

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