Warren Buffett is retiring from Kraft Heinz board

Warren Buffett is retiring from Kraft Heinz board

Warren Buffett is retiring from Kraft Heinz board

"In his early years, Jack was frequently mocked by the investment-management industry", Buffett said last year.

"A large portion of our gain did not come from anything we accomplished at Berkshire", he wrote, adding that about $29 billion of that $65.3 billion gain came from changes to the tax law.

The company is sitting on that pile of cash while Buffett waits for an "elephant" - a big company - to buy. In his annual letter to Berkshire shareholders, Buffett admitted that finding things to buy at a "sensible purchase price" has become a challenge, and is a major reason Berkshire is awash with $116 billion of low-yielding cash and government bonds.

In his much-anticipated annual letter to shareholders, Buffett explained that the company's net gain of $65.3 billion in 2017 was only partly due to his employees' efforts. 'The remaining $29 billion was delivered to us in December when Congress rewrote the US Tax Code'. He admitted that the struggle in finding a "sensible purchase price" had "proved a barrier to virtually all deals" past year.

The company's often-impressive pace of acquisitions had slowed past year, he noted, when the prices asked for businesses 'hit an all-time high, ' amid what he called 'a purchasing frenzy'.

'Only $36 billion came from Berkshire's operations, ' he wrote.

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"There is simply no telling how far stocks can fall in a short period", Buffett said. "If Wall Street analysts or board members urge that brand of CEO to consider possible acquisitions, it's a bit like telling your ripening teenager to be sure to have a normal sex life".

On Friday, Berkshire's Class A shares closed at $304,020.01, having risen above $300,000 a share for the first time ever in December on expectations that Trump's U.S. tax overhaul would pass into law. Real-time viewership in 2017 was about 3.1 million, a gain of 72 percent over the previous year, Buffett said.

His latest newsletter reports that Berkshire's net earnings rose past year from $24.07 billion to $44.94 billion. Operating profit, however, fell 18 percent to $14.46 billion, hurt by a rare loss from insurance underwriting.

Berkshire also owns clothing, furniture and jewelry firms.

Buffett says a 10-year bet he made with a group of hedge funds shows why investors should be wary of fees and focus on investing regularly for the long term.

Warren Buffett said in his annual letter the practice of managing portfolio risk using a specified ratio of bonds-to-stocks is flawed.

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