Buffett's Berkshire says quarterly profit rises 15 percent

Feb 26, 2017, 00:36
Buffett's Berkshire says quarterly profit rises 15 percent

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.

YOU MIGHT ALSO LIKE
  • Martin Scorsese film 'The Irishman' headed to Netflix, report says

    Martin Scorsese film 'The Irishman' headed to Netflix, report says

    The source also remarks Netflix handling the film instead of Paramount ensures Scorsese "can make the project he wants". Now, however, seven years after the film was announced, The Irishman has found a worldwide buyer in Netflix .
    Asia Stocks to Fall as Dovish Fed Minutes Spur Yen: Markets Wrap

    Asia Stocks to Fall as Dovish Fed Minutes Spur Yen: Markets Wrap

    That could trigger inflation pressures and force the Fed to boost rates at a faster pace than financial markets expect. Dallas Fed chief Robert Kaplan said earlier this month that the central bank should move "sooner rather than later".

    Department of Homeland Security releases glimpse of new immigration policy

    The new DHS memos are meant to implement Mr Trump's immigration actions as well as enforce existing immigration law. Now, the expedited removal process can be used for those in any part of the country illegally for up to two years.
  • 74 dead migrants washed ashore in Libya

    74 dead migrants washed ashore in Libya

    A spokesman for the aid organisation said there were still bodies floating out at sea as the agency had no way of retrieving them. The EU itself describes Libya as "unsafe" and systematic violence towards refugees and migrants has been widely documented.
    NASA launch postponed due to steering issues

    NASA launch postponed due to steering issues

    SpaceX's Falcon 9 rocket successfully lifted off from a NASA launchpad that was once used by Apollo astronauts. It was the first SpaceX launch from Florida since a Falcon 9 exploded on a launch pad on September 1, 2016.
    Opel agreements on product plans reach beyond 2020 - labour chiefs

    Opel agreements on product plans reach beyond 2020 - labour chiefs

    Clark had previously contacted GM President Dan Ammann to express concern over the future of Opel's United Kingdom plants. GM had pledged "renewed actions" to restore its European business to profitability before news of the talks broke.
  • Best and worst cities for traffic in South Africa

    Best and worst cities for traffic in South Africa

    The company said countries are ranked by a weighted average of their cities' peak hours spent in traffic congestion a year ago . NYC had the top daytime congestion on arterials and city streets, while San Francisco ranked first during peak times.
    Unilever slumps as Kraft Heinz pulls bid; U.S.  markets shut for holiday

    Unilever slumps as Kraft Heinz pulls bid; U.S. markets shut for holiday

    Analysts say Kraft Heinz , co-headquartered in Chicago and Pittsburgh, is still in the market for acquisitions. Its top US food brands include Knorr, Hellmann's and Lipton.
    Jose Mourinho: Now Blackburn can focus on the Championship

    Jose Mourinho: Now Blackburn can focus on the Championship

    He believes the FA Cup provides a welcome distraction for everyone at the football club and is looking forward to the game. Interestingly Blackburn have lost only one out of their last 5 games at Ewood Park.
  • Elina Svitolina beats Caroline Wozniacki to win Dubai Championships

    Elina Svitolina beats Caroline Wozniacki to win Dubai Championships

    Bellis surprised No. 27-ranked Yulia Putintseva 6-1, 7-5 in Dubai's first round, rallying from 5-1 down in the second set. The youngest American to defeat a top-10 opponent since Wimbledon 2009, when Melanie Oudin eliminated Jankovic.
    Trump hails conservative support at CPAC, slams 'fake' media

    Trump hails conservative support at CPAC, slams 'fake' media

    According to reporters on the ground, little Russian flags with the word "TRUMP" on them were handed out. But as you saw throughout the entire campaign, and even now, the fake news doesn't tell the truth.
    DC panda fans sad as Bao Bao leaves for China

    DC panda fans sad as Bao Bao leaves for China

    Bao Bao, who now weighs around 200lbs (90kg), has been a central attraction at the national zoo since her birth in August 2013. She'll be in quarrantine for approximately 30 days at the China Conservation and Research Center Dujiangyan Panda Base .
popular