$11 BILLION MISTAKE
The Rare 'Mistake' Warren Buffett Admitted, And More Takeaways From His Annual Berkshire Hathaway Letter
The Oracle of Omaha said he made a mistake.
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The Lede
Buffett told Berkshire Hathaway investors Saturday that his 2016 purchase of Precision Castparts was a "mistake," writing in his annual letter to shareholders that he had "paid too much for the company." His "miscalculation" — which amounted to an $11 billion writedown — "was laid bare by adverse developments throughout the aerospace industry," he wrote. Here are other key details from his letter.
Key Details
- Berkshire Hathaway, which owns companies like Geico, Dairy Queen and Duracell, posted a $35.8 billion net profit in Q4 of 2020, up 23% from the year before.
- The company's annual shareholders meeting will broadcast from Los Angeles on May 1 so that vice chairman Charlie Munger, who is 97, can attend.
- Buffett, who's worth around $90 billion, also discouraged from buying bonds and said that Berkshire Hathaway had repurchased shares to the tune of $24.7 billion last year.