Warren Buffett issues upbeat view
By Steve Gelsi, CBS.MarketWatch.com
NEW YORK (CBS.MW) -- While he griped of a shortage of cheap stocks to buy nowadays, the Oracle of Omaha, Warren Buffett, forecast an above-average year Saturday for his holding company Berkshire Hathaway.
"Overall, we are certain Berkshire's performance in the future will fall far short of what it has been in the past," Buffett warned in his annual letter to shareholders, before concluding that he's hopeful "we can deliver results that are modestly above average. That's what we're being paid for."
Berkshire Hathaway (BRKA: news, chart, profile) (BRKB: news, chart, profile) on Saturday reported 2003 earnings of $8.15 billion, or $5,309 per share, up from $4.29 billion, or $2,795 per share, in the year-ago period. Revenue rose to $63.9 billion, from $42.2 billion.
Rising insurance premiums boosted the bottom line of Berkshire, which counts consumer insurer Geico and industry reinsurer General Re among its holdings.
"In recent years . . . we've found it hard to find significantly undervalued stocks," Buffett said, but he added that the shortage of cheap stocks doesn't bother him, if he can find the right kind of stocks to buy. See links to Buffett's letters (presented in pdf format).
Buffett's annual letter is closely watched because he often flags issues ahead of the herd. Last year, for example, he urged corporate boards to get tough with their CEOs. See last year's story.
His 2002 letter noted Berkshire Hathaway's poor fiscal performance in the previous year, weighted down by reinsurance results tied to the Sept. 11 terror attacks.
Buffett said his future buying will hinge on whether a company has "favorable and enduring economic characteristics; are run by talented and honest managers and are available at a sensible price."
Shares of Berkshire Hathaway's A-listed shares rose $1,000 to $93,000 on Friday. The company's B-listed shares added $43 to $3,098. |
