Berkshire Hathaway’s 2019 annual letter centers on how accounting distortions, capital allocation discipline, and long-term equity optimism shape how investors should interpret performance. Buffett challenges headline earnings volatility, argues equities remain superior to bonds, and highlights a growing tension between a $128 billion cash pile and a lack of attractively priced opportunities.
Berkshire Hathaway 2019 Annual Report
Berkshire Hathaway
Warren Buffett
Research
144 Pages
Key Takeaways
Earnings Distortion Impact: GAAP changes drove reported earnings to $81.4 billion in 2019 versus $4 billion in 2018, a 1,900% swing largely disconnected from underlying operating performance.
Equities Over Bonds: Buffett suggests equities are likely to outperform long-term bonds over decades, especially with corporate tax rates near historic lows and interest rates remaining subdued.
Capital Deployment Challenge: Berkshire held roughly $128 billion in cash while deploying $5 billion into share buybacks in 2019, reflecting limited large-scale acquisition opportunities at acceptable valuations.
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