2022 Berkshire Hathaway Annual Shareholders Letter


Hi all,

Possibly well known to many of you, Warren released his Annual Shareholder Letter over the weekend, choc full of his usual pearls of wisdom for those of you wanting a top up in investment common sense and rational thinking.  You’ll note the front page confirms a 22% outperformance for Berkshire Hathaway over the S&P500 for the 2022 calendar year, and an incredible 10%pa outperformance p.a. over the last 58 years vs the S&P500 (19.8%pa vs 9.9%pa).  That’s why he and Charlie are THE BEST.

I have highlighted my favourites (yep, there’s a lot of highlighting!) which may make your scanning of the letter a little quicker. Please click HERE for a link to the letter.

Our great friend Peter Thornhill will go nuts reading of the success of Berkshire’s Coca-Cola and American Express investments summarised on page 4.  Both investments were made nearly 30 years ago.

The growth in both income (dividends) and capital growth (share price) to exceed inflation is EXACTLY the strategy we have in place for the core part of your investment portfolios.  The standout on the ASX of course is Washington H Soul Pattinson (ASX: SOL).  Your SOL investment has delivered a dividend increase every year over the past 20 years at a compound annual growth rate of 8.5% p.a., and a total return for the same period of 12.5% p.a., which is 3.4% p.a. higher than what the top 200 listed Australian Companies returned (including dividends – known as the ASX200 Accumulation index).  The compounding effect of that outperformance means a SOL shareholder has seen their original investment increase by nearly 9.5 times over the 20 years, which is more than double the index (very happy to talk you through these figures).

If anyone is interested in joining me in Omaha on Friday 5th May, please give me a call.

Enjoy the read!!