Warren Buffett calls Berkshire Hathaway’s 2012 investment return as "subpar"
New York, NY, United States (4E) – Warren Buffett wrote in his annual letter to shareholders that 2012 is a “subpar” year as Berkshire Hathaway’s per-share book value increase of 14.4 pe rcent did not beat the rate of return of the S&P 500.
The billionaire stated that Berkshire’s book value gain failed to beat the 16 per cent increase in the S&P 500′s total return, just the the ninth time the company was unable to outperform the stock index in 48 years.
Buffett, who is Berkshire’s chairman and CEO, said that he could never imagine since the partnership took control of Berkshire in 1965 that he would call a gain of $24.1bn as subpar, although he acknowledges that last year was a disappointment.
Berkshire’s chief, however, has only praises for the two new investment managers, Ted Weschler and Todd Combs. He added that the company is fortunate to have them and noted that both beat the S&P 500 last year by double-digit margins.
Not making a major deal in 2012 was disappointing, according to Buffett. This is despite that the $23.4bn planned acquisition by Berkshire and Brazil’s 3G Capital of H.J. Heinz Co. announced in February would make it the biggest deal that the billionaire investor has landed since the 2010 deal to takeover railroad operator Burlington Northern Santa Fe Corp for $26bn.