"He is offering a story of a multifaceted growth engine," said Tom Russo, a partner at Gardner, Russo & Quinn in Lancaster, Pennsylvania, a longtime Berkshire investor. "The primary message is that Berkshire has found some magnificent businesses, so let's celebrate them."
"Buffett's patience and discipline enabled him to make what is in essence the largest acquisition in Berkshire's history, its own stock, at a substantial discount to its current market price," said Jim Shanahan, an analyst at Edward Jones & Co.In his letter, Buffett touted what he called Berkshire's "four giants" including its massive insurance operations, BNSF, Berkshire Hathaway Energy and the Apple stake.
"Deceptive 'adjustments' to earnings -- to use a polite description -- have become both more frequent and more fanciful as stocks have risen," Buffett wrote. "Speaking less politely, I would say that bull markets breed bloviated bull...." Buffett also pledged to keep more than $30 billion of cash on hand, after long saying $20 billion was the minimum. That still leaves plenty available for the right acquisition.
Abel, 59, would become Berkshire's chief executive if Buffett were unable to continue. Portfolio managers Todd Combs and Ted Weschler, who invest $34 billion, are in line to oversee Berkshire's stock investments.
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