Warren Buffett offers lessons on investing in his annual Berkshire Hathaway letter

OMAHA, Neb. (AP) — Billionaire Warren Buffett is viewed as one of the world's greatest investors, so his annual letters to Berkshire Hathaway shareholders are always read closely for lessons.

Buffett no longer ventures much into politics or current events in his letters, so he won't offend anyone who might take it out on his many companies that include well-known ones like Geico insurance, Dairy Queen and Helzberg jewelry.

But Buffett's latest letter released Saturday does offer insights into investing and some lessons from his six decades at the helm of Berkshire. Here's a sample:

On what the U.S. government should do:

“Thank you, Uncle Sam. Someday your nieces and nephews at Berkshire hope to send you even larger payments than we did in 2024. Spend it wisely. Take care of the many who, for no fault of their own, get the short straws in life. They deserve better. And never forget that we need you to maintain a stable currency and that result requires both wisdom and vigilance on your part."

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On the future of Berkshire's well-read annual report:

“At 94, it won’t be long before Greg Abel replaces me as CEO and will be writing the annual letters. Greg shares the Berkshire creed that a “report” is what a Berkshire CEO annually owes to owners. And he also understands that if you start fooling your shareholders, you will soon believe your own baloney and be fooling yourself as well.”

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On making mistakes over the years:

"Of course, I expect to make my share of mistakes about the businesses Berkshire buys and sometimes err in evaluating the sort of person with whom I’m dealing.

"But I’ve also had many pleasant surprises in both the potential of the business as well as the ability and fidelity of the manager. And our experience is that a single winning decision can make a breathtaking difference over time. (Think GEICO as a business decision, Ajit Jain as a managerial decision and my luck in finding Charlie Munger as a one-of-a-kind partner, personal advisor and steadfast friend.)

“Mistakes fade away; winners can forever blossom.”

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On what Buffett relies on to profit:

“Businesses, as well as individuals with desired talents, however, will usually find a way to cope with monetary instability as long as their goods or services are desired by the country’s citizenry. So, too, with personal skills. Lacking such assets as athletic excellence, a wonderful voice, medical or legal skills or, for that matter, any special talents, I have had to rely on equities throughout my life. In effect, I have depended on the success of American businesses and I will continue to do so.”