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Want to invest ethically for a brighter future?
(but still make lots of money)?

Want to invest ethically for a brighter future? (but still make lots of money)?

 Take Rask’s FREE Ethical Investing course today.

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Want to invest ethically for a brighter future? 
(but still make lots of money)?

 Take Rask’s FREE online Ethical Investing course.

What lessons can be learned from the latest Berkshire Hathaway annual letter?

Warren Buffett writes an annual letter to Berkshire Hathaway shareholders, with the latest one recently released. What lessons can be learned?

Warren Buffett’s major talking points

Mr Buffett’s comments about bonds may be the lesson that steals the headlines.

Bonds comments

He wrote: “Bonds are not the place to be these days. Can you believe that the income recently available from a 10-year US Treasury bond – the yield was 0.93% at year end – had fallen 94% from the 15.8% yield available in September 1981. In certain large and important countries, such as Germany and Japan, investors earn a negative return on trillions of dollars of sovereign debt. Fixed income investors worldwide – whether pension funds, insurance companies or retirees – face a bleak future.”

He also pointed out that some bond investors may try to increase the “pathetic” returns now available by shifting their purchases to obligations backed by shaky borrowers. He said that risky loans are not the answer to inadequate interest rates.

Another key point was about share buybacks.

Share buybacks

He pointed out that Berkshire Hathaway started buying Apple shares in late 2016 and by the middle of 2018 it owned around 5.2% of Apple for a cost of $36 billion. Since then it has enjoyed regular dividends averaging about $775 million per year and it also pocketed $11 billion by selling a portion of the position.

Mr Buffett wrote: “Despite that sale – voila! – Berkshire now owns 5.4% of Apple. That increase was costless to us, coming about because Apple has continuously repurchased its shares, thereby substantially shrinking the number it now has outstanding. 

But that’s far from all of the good news. Because we also repurchased Berkshire shares during the 2 and a half years, you now indirectly own a full 10% more of Apple’s assets and future earnings than you did in July 2018.

The math of repurchases grinds away slowly, but can be powerful over time. The process offers a simple way for investors to own an ever-expanding portion of exceptional businesses.”

Berkshire Hathaway has continued to repurchase its shares since the end of the period.

Bet on the US

Mr Buffett is still confident about the US’ long term future:

In its brief 232 years of existence, however, there has been no incubator for unleashing human potential like America. Despite some severe interruptions, our country’s economic progress has been breathtaking.

Beyond that, we retain our constitutional aspiration of becoming “a more perfect union”. Progress on that front has been slow, uneven and often discouraging. We have, however, moved forward and will continue to do so.

Our unwavering conclusion: Never bet against America.”

Is BNPL the opportunity of a lifetime or is the sector a ticking time bomb?

Rask's analyst has just finished a 7,500-word report, The Ultimate BNPL Sector Report, taking a deep dive into this booming ASX sector. It shines a spotlight on each of the major players. You can get the full analyst report for FREE by CLICKING HERE NOW or entering your email below.

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Afterpay, Zip Co, Sezzle…

Is BNPL the opportunity of a lifetime or is the sector a ticking time bomb?

Rask's analyst has just finished a 7,500-word report, The Ultimate BNPL Sector Report, taking a deep dive into this booming ASX sector. It shines a spotlight on each of the major players. You can get the full analyst report for FREE by CLICKING HERE NOW.

Note: the report is 100% free.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

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Rask Media’s Ultimate BNPL Sector Report

Afterpay, Zip, Sezzle… is this the opportunity of a lifetime? Or is BNPL a ticking time bomb? This 7,500-word analyst report takes a deep dive into the BNPL sector and shines a spotlight on each of the major players in this booming market. 

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As we emerge from COVID-19, some tech companies are growing faster than ever. Rask’s investment analysts have identified 3 growth stocks set to benefit. Big time.

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