OMAHA, Neb. – The United States’ economy is in better shape compared to presidential candidates allow it to be seem, investor Warren Buffett said Saturday, even though businesses like his still face challenges.
In his annual letter to Berkshire Hathaway shareholders, Buffett didn’t name specific candidates or issues, but noted the negative drumbeat about the economy, healthcare reform and income inequality could get voters down about the future.
“It’s an election year, and candidates can’t stop talking about our country’s problems (which, obviously, only they are able to solve),” he said, adding later, “that view is dead wrong: The babies being born in America today are the luckiest crop ever.”
The answer such disruptions isn’t the restraining or outlawing of actions that increase productivity. Americans wouldn’t be living as along with we do when we had mandated that 11 million people should forever be employed in farming.
Buffett noted there will still be economic troubles as business evolves, but the country must make sure it features a solid back-up to help individuals who lose jobs.
“The answer such disruptions isn’t the restraining or outlawing of actions that increase productivity. Americans would not be living as well as we all do if we had mandated that 11 million people should forever be employed in farming,” he wrote.
Buffett noticed that change also creates challenges for Berkshire’s businesses. For instance, its BNSF railroad is certain to haul less coal later on and Geico insurance could be hurt by driverless cars.
He assured shareholders that Berkshire’s businesses will adapt just as the company did when its original Berkshire Hathaway textile operation failed.
Buffett’s letter is among the most well-read documents the corporate world each year because of his successful history and the knack for explaining complicated subjects basically.
Buffett said it value of Berkshire’s businesses improved 6.4 % last year even while its stock price fell 12.Five percent. When dividends are considered, the S&P 500 gained 1.4 % by comparison. Buffett has warned that it will be increasingly a hardship on Berkshire to continue beating the market because the company is so large.
Berkshire Hathaway employs more than 360,000 people at its eclectic mixture of companies, including insurance, utilities, railroad, manufacturing and retail firms. Berkshire also holds significant stakes in Coca-Cola, Wells Fargo, American Express, IBM along with other companies.
