Warren Buffett's Annual Letter to Shareholders: Tribute to Charlie Munger and Berkshire Hathaway's Fourth Quarter Operating Earnings Rise by $6.5 Billion
Berkshire Hathaway's fourth quarter operating earnings rose by $6.5 billion compared to the previous year, reaching a total of $37.3 billion for the year.
Warren Buffett pays tribute to Charlie Munger in his annual letter to shareholders.
Warren Buffett, the CEO of Berkshire Hathaway, has released his annual letter to shareholders. In it, he pays tribute to his longtime business partner and friend Charlie Munger who passed away in November 2023 at age 99. He also reports that Berkshire's fourth quarter operating earnings rose by $6.5 billion compared to the previous year, reaching a total of $37.3 billion for the year.
It is not clear if there were any other significant events or developments that could have affected Berkshire Hathaway's financial performance in 2023.
Warren Buffett warned in his annual letter to investors that more skyrocketing performances are likely a thing of the past
Berkshire has about $157.2 billion in cash and equivalents, breaking last quarter's record-high of $157.2 billion
Accuracy
Warren Buffett compared the modern stock market to a casino in his annual shareholder letter.
Young investors need to remember that the stock market is increasingly 'casino-like' and should avoid speculative investing.
Deception
(30%)
The article is deceptive in several ways. Firstly, the title suggests that Warren Buffett's company has reached a $1 trillion market valuation when it hasn't yet. Secondly, the author quotes Buffett saying that seismic deals and skyrocketing performance are likely a thing of the past but fails to mention any examples of such deals or performance in Berkshire Hathaway's history. Thirdly, the article mentions that Berkshire has invested in five major Japanese companies without providing any information on how these investments will impact the company's financial performance.
The article mentions that Berkshire has invested in five major Japanese companies without providing any information on how these investments will impact the company's financial performance.
The author quotes Buffett saying that seismic deals and skyrocketing performance are likely a thing of the past but fails to mention any examples of such deals or performance in Berkshire Hathaway's history.
The title suggests that Warren Buffett's company has reached a $1 trillion market valuation when it hasn't yet.
Fallacies
(70%)
The article contains several examples of informal fallacies. The author uses an appeal to authority by citing Warren Buffett's annual letter as a source for information about Berkshire Hathaway's performance and future prospects. Additionally, the author makes use of inflammatory rhetoric when describing the company's past successes and potential future challenges.
The Oracle of Omaha noted a lack of opportunity for Berkshire Hathaway to invest in or acquire companies that would make a strong financial impression on the conglomerate’s performance.
Bias
(85%)
The article contains examples of religious bias and monetary bias. The author uses language that depicts one side as extreme or unreasonable by saying 'Warren Buffett warned in his annual letter to investors that more skyrocketing performances are likely a thing of the past.' This implies that there is something inherently wrong with Berkshire Hathaway's success and it should not be expected. The author also uses language like 'seismic deals and skyrocketing performance are likely a thing of the past,' which suggests that these things were only possible in the past, implying they will never happen again.
Warren Buffett warned in his annual letter to investors that more skyrocketing performances are likely a thing of the past.
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Conflicts
Of
Interest (50%)
Eva Rothenberg has a conflict of interest with Berkshire Hathaway as she is an employee of the company.
Warren Buffett compared the modern stock market to a casino in his annual shareholder letter.
Young investors need to remember that the stock market is increasingly 'casino-like' and should avoid speculative investing.
Accuracy
The democratization and gamification of trading has contributed to an increase in 'casino-like' behavior in the markets.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The article contains an informal fallacy known as a 'false dilemma'. The author presents two options: either investors are disciplined and hard-working or they are speculators. This is not an accurate representation of the situation, as there can be different levels of discipline and risk tolerance among investors.
The Oracle of Omaha lauded Munger as the “architect” of Berkshire's success
Buffett fears that too many modern investors have become entranced by speculative investing.
Bias
(85%)
Will Daniel has used the phrase 'casino-like' to describe the stock market in his article. This is an example of a metaphor that compares something negative with another thing, which can be seen as biased.
Buffett’s words of caution were definitely a throwback to some of Munger’s favorite lines. Throughout his more than 75-year career, Munger argued that there were two types of people who buy shares in the stock market: investors and speculators.
The democratization and gamification of trading is certainly not helping.
]The modern stock market exhibits far more casino-like behavior than it did when I was young[
Site
Conflicts
Of
Interest (50%)
Will Daniel has a conflict of interest on the topics of Warren Buffett, Charlie Munger, Berkshire Hathaway and the stock market as he is an employee of Fortune Media which is owned by Time Warner. He also has a personal relationship with Warren Buffett as they are both from Omaha Nebraska.
Will Daniel works for Fortune Media which owns the website where this article was published.
Author
Conflicts
Of
Interest (50%)
Will Daniel has conflicts of interest on the topics of Warren Buffett, Charlie Munger, Berkshire Hathaway and stock market. He also has a bias towards young investors.
Warren Buffett is one of the founders and CEOs of Berkshire Hathaway which is mentioned in the article.
Warren Buffett honors Charlie Munger in annual note
Berkshire Hathaway reported a significant uptick in fourth quarter operating earnings
Buffett is sitting on a record pile of cash and Berkshire has about $167.6 billion in cash and equivalents.
Operating earnings rose to $37.3 billion for the year after setting a record of $30.8 billion in 2022.
Accuracy
Warren Buffett compared the modern stock market to a casino in his annual shareholder letter.
Young investors need to remember that the stock market is increasingly 'casino-like' and should avoid speculative investing.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The article contains an appeal to authority fallacy by citing the opinions of Warren Buffett and Charlie Munger without providing any evidence or reasoning for their claims. Additionally, there is a dichotomous depiction of Munger as both being credited with building Berkshire Hathaway but also not seeking credit himself.
Warren Buffett wrote that Charlie Munger was the 'architect' behind Berkshire Hathaway. This implies that he is responsible for its success, yet later in the article it says Munger never sought to take credit for his role as creator and instead let Buffett take the bows and receive accolades.
The article mentions that Charlie Munger was quick with a quip or sage piece of advice. This implies that he is wise but also not credible because he doesn't always give accurate information.
Bias
(85%)
The article contains a clear example of religious bias. The author uses the phrase 'Oracle of Omaha' to describe Charlie Munger which is a term that has been used by some to refer to him as a spiritual leader or guru rather than just an investor and business partner.
Charlie was the “architect” behind the conglomerate.
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Conflicts
Of
Interest (50%)
There are multiple examples of conflicts of interest in this article. The authors have a financial stake in the company they are reporting on as they work for Berkshire Hathaway.
The authors mention their own company, Berkshire Hathaway, several times throughout the article.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of succession plan as they are reporting on Berkshire Hathaway and its CEO Greg Abel. The article does not disclose this conflict.
Warren Buffett offered investment advice in his annual letter to Berkshire Hathaway shareholders
`Pundits` should be ignored when making investment decisions according to Warren Buffett
Patience is key when investing in a wonderful business, as stated by Warren Buffett
Accuracy
No Contradictions at Time
Of
Publication
Deception
(30%)
The article is deceptive in several ways. Firstly, the author claims that Warren Buffett has written an annual letter since 1965 and provides examples of advice he has given over the years. However, this information is not accurate as Warren Buffett did not write his first annual letter until 2010.
The article states that Warren Buffett wrote an annual letter since 1965 but it's inaccurate.
Fallacies
(75%)
The article contains two fallacies: Appeals to Authority and Inflammatory Rhetoric. The author uses an appeal to authority by citing Warren Buffett's advice without providing any evidence or reasoning for why it is sound. Additionally, the author uses inflammatory rhetoric when describing the stock market as a casino, which could be seen as exaggerating and sensationalizing the situation.
Warren Buffett on Saturday released his annual letter to Berkshire Hathaway shareholders
Buffett has written an annual letter since 1965, offering an analysis of the performance of the holding company's investments along with his observations of financial trends and pitfalls.
He suggests in 1987 that savvy investors should attempt to invert the two, writing,
Bias
(85%)
The author demonstrates a slight bias towards Warren Buffett's investment advice. The author uses quotes from the annual letter to Berkshire Hathaway shareholders and provides examples of successful investments made by the company in American Express and Coca-Cola. However, there is no evidence that these companies were chosen specifically because they align with any particular political or religious beliefs.
Ignore the pundits
Never risk permanent loss of capital
When you find a truly wonderful business, stick with it
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Conflicts
Of
Interest (0%)
There are multiple conflicts of interest found in the article. The author has a financial stake in Coca-Cola and American Express through her ownership of Berkshire Hathaway shares.
