OMAHA — Billionaire Warren Buffett wants Americans to be optimistic about the country’s future but wary about borrowing money and the games public companies play with profit numbers they report.
Buffett said in his annual letter to Berkshire Hathaway shareholders Saturday that he still thinks America’s best days are ahead.
“Commentators today often talk of ‘great uncertainty.’ But think back, for example, to December 6, 1941, October 18, 1987, and September 10, 2001,” Buffett wrote, referring to the days before the Pearl Harbor attack, a stock market crash and terrorist attacks in the U.S. “No matter how serene today may be, tomorrow is always uncertain. Don’t let that reality spook you.”
He said a housing recovery will likely begin within the next year, which would help the economy and several Berkshire subsidiaries, including ones that make carpets and bricks.
Buffett’s letter detailed how the acquisition of Burlington Northern Santa Fe railroad, better results at Berkshire’s other subsidiaries and a $1.9 billion paper gain on investments and derivatives combined to boost the company’s net income by 61 percent to $12.97 billion on revenue of $136.2 billion in 2010.
The letter was full of good news for Berkshire investors because nearly all of its businesses, except the ones linked to housing, performed well, said Glenn Tongue, a managing partner at T2Partners investment firm.
The 80-year-old chairman and chief executive of Berkshire said that investment manager Todd Combs will manage $1 billion to $3 billion of Berkshire’s $158 billion investment portfolio.
Berkshire hired Combs last fall and says he has the risk aversion, dedication and track record he wants in an investment manager.
To replace Buffett, Berkshire plans to split his job — into CEO, chairman and several investment managers. But Buffett has said he has no plans to retire and that he loves his work and is in good health.
