8 Epic Lessons From Warren Buffett’s 2022 Shareholder Letter

 Many of Buffett’s legendary quotes come from these letters filled with integrity, sardonic humor, and corniness. Here is our analysis of last year’s letter.

This year’s message reminds us that the company’s well-positioned businesses reflect the economy, can withstand higher inflation, and pay a lot of taxes.

Buffett is always ready to vocalize his criticism aimed at company managements who use financial engineering to prop up earnings and their stocks more than is acceptable.

8 Epic Lessons From Warren Buffett’s 2022 Letter To Shareholders

1. Berkshire’s Four Giants Highlights The Company’s Diversified Assets, Growth, And Value Property And Casualty Operations And Its Insurance “Float” They have unique characteristics that allow them to enjoy $147 billion of insurance “investing float” at the end of 2021.

Berkshire’s Apple Stake This holding is its second giant. The stake in Apple shares is a significant portion of the market value of all its interests, at $161.155 billion, or about 46% of total marketable investments based on 15 holdings.

2. Three Ways To Increase Share Value Controlled Businesses The first way to increase share values is through the long-term earnings power of Berkshire’s controlled and entirely owned businesses through internal growth or acquisitions.

Non-Controlled Businesses The way to amp value is to buy non-controlling partial interests in excellent publicly traded businesses, like its share ownership in Apple shares.

3. Berkshire’s Strong Cash Condition Ripe For Acquisition Opportunities Buffett tells us that means that Berkshire is financing half of 1% of the US national debt, not an insignificant amount.

4. Buffett Would Rather Be Investing Buffett’s investing prowess dates back to March 11, 1942, when at age 11, he paid all his savings, buying three shares of Cities Services preferred stock.

5. Berkshire Is The Biggest Infrastructure Company In The US Although Berkshire’s insurance businesses, the company owns and operates more domestic infrastructure assets than any other American corporation, in terms of its property, plant, and equipment of $158 billion on its balance sheet.

6. Berkshires Pays A Lot of Taxes, But That Wasn’t Always The Case The company paid $3.3 billion in federal tax payments, excluding state and foreign taxes, so they can say, “I paid at the office.”

7. His Advice For Students Buffett’s advice to university students is that they seek employment in 1)the field and 2) the kind of people they would select if they did not need money.

Swipe Up To Read More about  8 Epic Lessons From Warren Buffett’s 2022 Shareholder Letter