Letter to BRK shareholders 2014
Explore the journey of Berkshire Hathaway in 2014, a year marked by substantial growth and strategic expansion. This episode delves into the remarkable 50-year trajectory under current management, highlighting an impressive 8.3% increase in per-share book value. Uncover insights into Berkshire's shift from primarily holding securities to owning and operating large businesses, a move that significantly widened the gap between intrinsic value and book value. The episode also sheds light on the "Powerhouse Five" - Berkshire's largest non-insurance businesses - and their record pre-tax earnings of $12.4 billion. Despite challenges faced by BNSF, one of the five, Berkshire's diverse portfolio continued to strengthen, with their insurance operation achieving a 12th consecutive year of underwriting profit. Join us as we analyze Warren Buffett's strategic decisions, including substantial investments in energy and transportation, and explore his reflections on investment philosophy and the intrinsic value of businesses. This comprehensive review of Berkshire Hathaway's 2014 performance offers a deep dive into the minds of one of the world's most successful investors and his approach to sustaining long-term growth.