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BRK-A
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178 days

Warren Buffett's annual letter to Berkshire Hathaway shareholders: Read Here

1. Berkshire paid a record $26.8bn to the IRS in 2024; tax burden is noteworthy. 2. Buffett noted better-than-expected performance despite 53% of businesses declining; mixed results noted. 3. Investment income from Treasury-Bill gains helped offset operational earnings decline; liquidity increased. 4. BRK-A saw a slight 0.59% drop in trading; market reacted cautiously to tax pressuring.

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FAQ

Why Neutral?

Although the record tax bill increases cash outflow, strong investment gains historically offset such negatives. Berkshire’s past performance shows that tax costs are typically priced in over time.

How important is it?

The record tax payment and mixed operational performance may prompt short-term volatility, but Buffett’s track record and offsetting gains limit long-term impact.

Why Short Term?

The immediate trading dip reflects short-term market caution, while long-term fundamentals remain robust as seen in similar historical instances.

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