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Warren Buffett, chairman and CEO of Berkshire Hathaway, released his annual letter on Saturday. This promoted the company’s record-breaking tax payments last year, prompting the federal government to spend money wisely.
When Buffett first bought Berkshire Hathaway 60 years ago, his longtime business partner Charlie Manger was a massive textile business at the time, which led to profits and taxes. I remembered warning him that he had been shown to be unable to pay. time.
“The US Treasury Department in all places had already received a quiet warning of Berkshire’s fate,” he wrote. “In 1965, the company never paid one year’s income tax, which is an embarrassment that was generally winning at the company for 10 years. Such economic behavior can be understood by attractive startups. It may be, but when it occurs, a yellow light flashes in a venerable pillar of American industry.
“Fast-forward 60 years and when the same company still operates under the name Berkshire Hathaway, paid far more corporate income taxes than the US government has ever received from any company, the Treasury Department. Imagine the surprise of Buffett.
Warren Buffett’s annual letter to Berkshire Hathaway to shareholders: Read here
Warren Buffett, chairman and CEO of Berkshire Hathaway, promoted the company’s record-breaking tax payments in an annual letter. (J. Kempin/Getty Images/Getty Images)
“To be precise, Berkshire made four payments to the IRS last year, totaling $26.8 billion, about 5% of what all of America paid. Plus, foreign governments and 44 states are getting income taxes. I paid a considerable amount for it.))
Buffett added that the company’s gross income tax payments to the U.S. Treasury totaled $100 billion over time, and that it has only paid one dividend over the past 60 years.
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Value investors known for holding stocks over the long term have also promoted his best investments.
“We own a small portion of very large, very profitable businesses with common names like Apple, American Express, Coca-Cola, Moody’s, and many of these companies are operating. He has earned very high returns with the pure concrete equity needed. “He said.
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Buffett continued to discuss the value of capitalism. He said there are drawbacks and abuses of “in certain respects it’s even worse than ever,” but “it can work with unparalleled wonders in other economic systems.”
“It’s true that our country has borrowed overseas from time to time to compensate for our own savings. But at the same time, we have been consistently saving many Americans, and we have been able to consistently save and savers and others. The Americans had to wisely deploy the capital. What it produced would have made the country spin its wheels.”
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“The American process has not always been clean. We had many villains and promoters in our country forever trying to exploit people they mistakenly trust in their savings. Brutal With the deployment of capital that ultimately infused with flounder for competition and disruptive innovation, American savings have brought the volume and quality of production beyond any settler’s dream.”
“Even though they had only four million bases and despite brutal internal wars at an early stage, America quickly changed the world, despite having one American face-off against another.” wrote Buffett.
Buffett urged the federal government to spend wisely and secure a stable currency. (Photo: Kevin Dietsch / Getty Images / Getty Images)
He explained that in “a very small way,” Berkshire shareholders forgot their dividends and took part in the American miracle. Originally, over time, “small, almost meaningless “reinvestment” became mushrooms.”
“Berkshire’s activities are now affecting every corner of our country. And we are not finished. Companies are dead for many reasons, but unlike human destiny, Old age itself is not fatal. Berkshire today is much younger than 1965,” he wrote.
“But, as Charlie and I have always admitted, Berkshire didn’t achieve that outcome anywhere except America, while America would have succeeded if Berkshire hadn’t existed.”
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“So, thank you, Uncle Sam. One day, Berkshire’s nie and ne will send even bigger payments than they did in 2024. Spend wisely. In life, they will keep you stable currency. I will never forget that I need to.
