In his annual letter to Berkshire Hathaway Inc. shareholders on Saturday, the world's third-richest person, Warren Buffett, expressly addressed a number of issues that have been brought up as a result of the company's recent business decisions, according to The Wall Street Journal.
Buffett's statements, which took the form of an 18,000-word, 31-page letter, explained the company's partnership with 3G Capital Partners LP, a firm run by Brazilian billionaire Jorge Paulo Lemann and which, unlike Buffett's Berkshire, has a reputation for aggressive cost-cutting and a tendency to lay off thousands of employees at each company it acquires.
While Buffett acknowledged that Berkshire and 3G have different styles and strategies, the billionaire nonetheless stated that the two companies have found a significant middle ground upon which to do business, reports Fortune.
"Jorge Paulo and his associates could not be better partners. We share with them a passion to buy, build and hold large businesses that satisfy basic needs and desires," Buffett wrote.
Another issue addressed by Buffett was Berkshire's Clayton Homes mobile home unit, which has recently been under fire over allegations that the company discriminated against blacks and Hispanics.
Though Clayton has already denied the allegations, Buffett nonetheless stated that the mobile home unit was a very careful lender and that it had escaped major regulatory fines despite more than 60 state and federal reviews during the last two years, reports Reuters.
Berkshire also reported a very impressive full-year profit increase of 21 percent at $24.08 billion. The company's operating profit also increase 5 percent to an equally impressive $17.36 billion.
For more Business News, click here.
