Warren Buffett, the CEO of Pocaccia, issued a letter to Pocaccia shareholders on Feb. 27, emphasizing that he remains confident in the future of the United States and believes that bond investors will face a “bleak future. He also pointed out that Apple has been ranked with Pocock’s insurance business and Burlington Northern Santa Fe (BNSF) railroad business as Pocock’s three most valuable assets.
Buffett praised the ability of the U.S. economy to endure “severe disruptions” and to make “amazing” progress, and “our firm conclusion is: never short the United States.
He pledged that he and his successor would manage shareholders’ money at Pocahontas carefully. Despite the 31,000 layoffs last year, Buffett maintained his signature optimism, buying back a record $24.7 billion of his own stock last year, showing that he believes Pocahontas shares are undervalued.
After heavy selling pressure in the bond market last week spilled over to global stock markets, Buffett warned bond investors may face a “bleak future” and advised investors to avoid fixed income markets, “global fixed income investors (whether pension funds, insurance companies or retirees) face a bleak future “Today, bonds are not the place to go.
He warned that it is worrisome that insurers and bond buyers “are now getting a pitiful payout by buying debt guaranteed by shaky borrowers instead”.
Buffett also maintained his usual confidence in Apple, which he said was worth more than $120 billion by the end of 2020 since Pocockcia began buying Apple stock in late 2016, and said Apple, along with insurance and BNSF, were Pocockcia’s three most valuable assets. The four investments are the “Family jewels” of Poccia.
But Warren Buffett has had his eye on the ball, admitting that he made a mistake in 2016 that led to a write-down of nearly $11 billion last year. That year, Poccia acquired aerospace and defense industry parts maker PCC for $37.2 billion, but PCC’s key customer source, the aerospace and aerospace industry, was hit hard by the new crown Epidemic last year.
BNSF came under the Pocahontas umbrella in 2010. In the past, Warren Buffett did not touch the technology stocks he thought he did not know much about, but in recent years, with the assistance of his investment deputy Combs and Wessler, Pocockcia has invested in technology stocks such as Amazon, Snowflake and Verizon.
Warren Buffett also announced the top 15 stock investments last year, in terms of market value of holdings, Apple Inc. was the highest, reaching $120.424 billion, Bank of America and Coca-Cola ranked second and third, and BYD of mainland China ranked eighth with $5.897 billion.
Pocahontas slightly reduced its corporate debt holdings during the quarter, holding most of its cash (about $113 billion) in short-term treasury bills due at the end of the year.