Warren Buffett has sent the latest edition of his annual letter to the Berkshire Hathaway Inc. shareholders highlighting on the future investment plans and other key prospects. For Buffett to write this year’s annual letter to the shareholders and his fans worldwide, it’s not been that easy. For a long time, Buffett has been assessing the American economy and the prospects of his conglomerate, but the recent letter’s tone revealed his frustrations.
Investors across the world laud Buffett’s achievements who have significantly become the role model to many people who are in business due to his successful investment mantras. His newsletter is usually closely watched by the public each year since it contains useful information on the investment mantras and wisdom needed to survive in the unpredictable business environment.
Although the Berkshire’s shares increased tremendously in 2017, Buffett reflection of the year reveals the M&A challenges that he faced. He gave the details on the acquisitions that are unattractive and the potential business transactions that collapsed leaving the conglomerates in a critical situation.
Buffett, 87-year-old has taken a while before writing on the acquisitions or his own businesses including Berkshire after facing stiff competition from other strategic acquirers who are more than willing to pay for the business growth opportunities available that Berkshire itself could not afford.
In the letter, Buffet also mentioned his plans to acquire huge acquisitions in order to substantially increase his earnings, especially in the non-insurance group. He included the plans meant to acquire a major transaction of about 38.6% in the Pilot Flying J. The terms of the agreement were never disclosed but the business makes more than $20 billion in sales.
Kraft Heinz announced recently that Buffett is leaving its board, a food maker company whose revenue has been declining and it’s currently looking for a suitable megamerger. Buffett seems to be moving away from Kraft Heinz as he plans to focus on the Berkshire megadeal with other major firms. However, Buffett understands that putting a huge portion of cash of his conglomerate is a risk in itself.
