On the evening of the 24th, Beijing time, Berkshire Hathaway, under Warren Buffett, just announced its annual open letter to shareholders on its official website. In 2023, Berkshire did not outperform the S&P 500, but achieved 15Impressive annual market capitalization gain of 8%. Every shareholder letter for decades has begun with the words "My job and my long-term partner Charlie Munger is to manage a lot of people's savings", and Mr. Munger left on November 28 last year. The latest annual report and letter to shareholders are undoubtedly another consolation from Warren Buffett's closest partner in the past 60 years.
In this year's shareholder letter, Warren Buffett deliberately wrote a page at the beginning of the letter entitled: Charlie Munger - Berkshire's architect. In reality, he noted, Charlie is the "architect" of the current Berkshire, and I am the "general contractor," building day in and day out for his vision.
In this year's shareholder letter, Warren Buffett did not provide a comparison of Berkshire's performance with the performance of the S&P 500 index, as is customary, at the beginning, but at the end. In 2023, Berkshire will increase by 158%, and the S&P 500 index grew by 263 percentage points. In the long run, Berkshire will grow at a CAGR of 198%, which is significantly more than the S&P 500's 102%, while Berkshire's market capitalization growth rate from 1964 to 2023 is a staggering 4,384,748%, or more than 43,847 times, compared to 31,223% for the S&P 500, or more than 312 times.
Berkshire Hathaway's shareholder letter conveys deep thinking and unique investment philosophy to investors around the world. In this meaningful letter, Buffett remembers and affirms his partner Charlie Munger, and expresses his confidence and expectations for Berkshire's future. Warren Buffett gave a positive evaluation of Berkshire's continued growth, and although the performance in 2023 failed to meet expectations, Berkshire's investment strategy and management model still showed strong vitality and steady growth momentum in the long run.
Charlie Munger, as a long-term partner of Warren Buffett, has made indelible contributions to the development and construction of Berkshire. In his shareholder letter, Buffett likened Munger to an "architect" and emphasized his important role in the company's development. Munger's death has undoubtedly brought certain challenges to Berkshire, but the company has maintained a steady growth momentum under the leadership of Warren Buffett, showing strong resilience and resilience.
Although Berkshire failed to outperform the S&P 500 in 2023, the company's long-term performance remains impressive. In the long run, Berkshire's compound annual growth rate per ** value far outperforms the S&P 500 index, demonstrating the company's excellent investment management capabilities and solid financial foundations. In his shareholder letter, Warren Buffett emphasized the importance of long-term investment and expressed confidence in the company's future growth.
Overall, Berkshire Hathaway's shareholder letter is filled with optimism and confidence for the future, demonstrating the company's solid growth and outstanding performance. Warren Buffett's nostalgia and affirmation of his partner Munger, as well as his outlook for the company's future, will undoubtedly further inspire global investors' confidence and expectations for Berkshire. As the global economy continues to evolve and change, Berkshire will continue to uphold the philosophy of long-term investment and create sustainable and stable returns for shareholders.
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