Warren Buffett 'almost certain' stocks will outperform bonds if interest rates remain low

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In his annual letter to shareholders, Warren Buffett wrote that stocks are still a 'much better' choice for investors over the long haul.

Berkshire Hathaway is a big conglomerate, which owns businesses ranging from insurers to railroads to retailers. Among Berkshire's top stock holdings is Apple. Other big holdings include Coca-Cola, Wells Fargo and American Express.“Broadly speaking, the recommendation that Berkshire has had is that investors should own index funds instead of trying to pick individual stocks to beat the market,” says Meyer Shields, analyst at KBW.

Investors looking for more details on Buffett's successor didn’t get any fresh insights. He reiterated that Berkshire was “100% prepared” for the eventual departures of himself and Vice Chairman Charlie Munger, 96. Buffett said Berkshire’s managers and board members will protect the company after he and Munger are gone.

“We possess skilled and devoted top managers for whom running Berkshire is far more than simply having a high-paying and/or prestigious job,” Buffett wrote. “Finally, Berkshire’s directors — your guardians — are constantly focused on both the welfare of owners and the nurturing of a culture that is rare among giant corporations.”

Buffett also said that the current system of reviewing deals doesn’t always work well for investors because it almost always favors the deal that corporate CEOs propose. Companies should consider hiring two sets of advisers to argue for and against a deal before moving forward instead of just hiring a Wall Street firm that favors the deal, he wrote.

 

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I have been with Warren(89) and Charlie (96) for over 30 years. Today. I received the annual news letter and it is always an informative and entertaining letter. May God Bless these managers of Berkshire!

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