Warren Buffett, chairman, and CEO of Berkshire Hathaway encouraged foreign investors to join the success of his company in the future. He noted that the U.S. economy and the investment climate serve as tailwind for the company.
“There’s more to come. So join in with us. Berkshire Hathaway is going to do well in the years ahead,” said Buffett in a video address to the Select USA Summit intended to attract foreign investments.
Buffett said Berkshire Hathaway achieved a large part of its success because it has been operating in the United States. He noted several U.S. advantages including equality of opportunity, encouragement for innovator, and the rule of law.
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Motherlode of opportunities runs through America, says Buffett
In his 2014 annual letter to shareholders, Buffett emphasized the United States has a plentiful supply of opportunities. According to him, Berkshire Hathaway’s vice chairman,Charlie Munger and he “have always considered a bet on ever-rising U.S. prosperity to be very close to a sure thing.”
Buffett wrote, “The mother lode of opportunities runs through America. The treasures that have been uncovered up to now are dwarfed by those still untapped. Through dumb luck, Charlie and I were born in the United States, and we are forever grateful for the staggering advantages this accident of birth has given us.
Buffett believes that United States’ best days lie ahead
Buffett also asked, indeed, who has ever benefited during the past 238 years by betting against America? He noted that the real per-capita U.S. output sextupled in his lifetime alone.
Furthermore, Buffett stressed, “The dynamism embedded in our market economy will continue to work its magic. Gains won’t come in a smooth or uninterrupted manner; they never have. And we will regularly grumble about our government, but most assuredly, America’s best days lie ahead.”
Berkshire Hathaway today and 50 years ahead
Buffett boasted that Berkshire Hathaway is “now a sprawling conglomerate, and constantly trying to sprawl further.
Today, Berkshire Hathaway has unmatched collection of businesses, and most enjoy favorable economic prospects. It has a cadre of outstanding managers (few exception), who are unusually devoted to the subsidiary that they operate, and to Berkshire Hathaway.
The conglomerate also has an extraordinary diversity of earnings, premier financial strength, and a vast liquidity. Berkshire Hathaway is also the first-choice (home of choice) among many owners and managers who are considering a sale of their businesses.
Buffett also pointed out the Berkshire Hathaway has a culture that is unique in many ways compared with that of most large companies. According to him, the conglomerate’s culture is now rock-solid.
“These strengths provide us a wonderful foundation on which to build,” said Buffett.
Buffett believes that Berkshire Hathaway is ideally positioned for life. He and Charlie are confident that the conglomerate has the right people in place (directors, managers, and prospective successors), its culture is embedded throughout their ranks, and its system is regenerative.
He believes that there is a low chance for patient Berkshire Hathaway shareholders to lose permanent capital. Buffett said the conglomerate’s per share intrinsic business value is almost certain to advance over time.
Berkshire Hathaway has zero chance of experiencing financial problems. The conglomerate is prepared, and the strength of its balance sheet and earnings potential has been doubled since the 2008 financial crisis.
According to Buffett, Berkshire Hathaway will never engage in operating or investment practices that would lead to sudden demands for a large sum of cash. It will continue to achieve organic gains, make bolt-on acquisitions and enter new fields. Berkshire Hathaway can build its underlying per-share earnings power every year.