Buffett’s annual letter to shareholders arrived as scheduled. This is the 56th letter Buffett wrote to the shareholders of Berkshire Hathaway under his control. According to the 2020 investment report issued by Berkshire’s official website, the company’s full-year net profit attributable to shareholders in 2020 was US$42.521 billion, and this figure was US$81.417 billion in 2019, a year-on-year decrease of nearly 48%, almost “Cut in the middle.” But in the long run, from 1965 to 2020, Berkshire’s compound annual growth rate was 20%, which significantly outperformed the S&P 500’s 10.2% growth rate.
Apple is still Berkshire’s largest stock, holding a stock market value of up to 120.424 billion U.S. dollars by the end of 2020. Buffett stated in his letter to shareholders that he sold part of Apple’s stock in 2020, which would be worth $11 billion. Bank of America and Coca-Cola are Berkshire’s second and third largest stocks, respectively. As of the end of 2020, the stock market value is 31.306 billion U.S. dollars and 21.936 billion U.S. dollars.
Chinese company BYD is Buffett’s eighth largest stock. As of the end of last year, Berkshire held 225 million shares of BYD, with a market value of $5.897 billion. In September 2008, Buffett subscribed for 225 million H shares of BYD at a price of 8 Hong Kong dollars per share, with a total transaction price of approximately 1.8 billion Hong Kong dollars (about 230 million US dollars). Since then, Buffett has never sold BYD. Twelve years later, Buffett’s share of BYD’s market value has soared nearly 25 times.