Related News
Buffett endorses optimistic stance over US economy
Print Edition
BILLIONAIRE investor Warren Buffett said on Saturday that the US economy is in better shape than the presidential candidates make it seem, 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 negativity about the economy, health care reform and income inequality may worry voters about the future.
“It’s an election year, and candidates can’t stop speaking about our country’s problems (which, of course, only they can solve),” wrote Buffett, who has endorsed Democratic Hillary Clinton. “That view is dead wrong: The babies being born in America today are the luckiest crop in history.”
Buffett struck an optimistic tone in the wide-ranging letter, which largely focused on what contributed to his conglomerate’s US$24 billion profit last year and discussed Berkshire’s prospects for the future. The letter also touched on climate change.
Buffett defended the lending practices at its mobile home unit, Clayton Homes, and Berkshire’s association with the 3G Capital investment firm.
Clayton’s lending practices have been questioned over the past year in stories by The Seattle Times and The Center for Public Integrity that suggested the company was using predatory lending practices. Buffett said Clayton follows state and federal regulation and retains ownership of every mortgage it finances. He included a copy of a disclosure form Clayton uses to inform customers about lending options.
Berkshire teamed up with 3G Capital to buy Kraft Foods and Heinz — and promptly announced layoffs at both firms. Buffett said Berkshire has always craved efficiency and tends to buy lean companies, while 3G looks for investments that need costs reduced.
Edward Jones analyst Jim Shanahan said on Saturday the fact that Buffett devoted space to defending 3G and Clayton suggests he’s still hearing criticisms. Buffett has addressed both topics at shareholder meetings before.
The letter also noted that Berkshire shareholders will be asked this year to vote on a proposal requiring the company to prepare a report on the threat climate change poses for its insurance operation.
Buffett said it shouldn’t hurt insurance firms because policy prices are set annually based on that year’s risks.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
