Warren Buffett's Berkshire Hathaway released its closely-watched annual letter on Saturday, in which the Oracle of Omaha told investors that the holding company's investment gains would continue to be 'substantial' in the coming years and the U.S. economy would continue its 'miraculous' boom.
The Omaha, Nebraska-based conglomerate's net earnings rose to $6.29 billion in the fourth quarter of 2016, up from $5.48 billion in the comparable year ago period. Investors frequently parse the document for Buffett's insights into specific sectors, in addition to his thoughts on the economy.
"Our expectation is that investment gains will continue to be substantial – though totally random as to timing – and that these will supply significant funds for business purchases," Buffett wrote in the letter.
"Concurrently, Berkshire's superb corps of operating CEOs will focus on increasing earnings at the individual businesses they manage, sometimes helping them to grow by making bolt-on acquisitions."
The 86-year old investor and his partner, 93 year-old Charlie Munger, have functioned as a dynamic duo that's helped turn Berkshire into a household name. Buffett wrote that the partnership will sometimes yield fewer dividends, but would remain lucrative.
"Some years, the gains in underlying earning power we achieve will be minor; very occasionally, the cash register will ring loud. Charlie and I have no magic plan to add earnings except to dream big and to be prepared mentally and financially to act fast when opportunities present themselves," Buffett said.
"Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it's imperative that we rush outdoors carrying washtubs, not teaspoons. And that we will do," the investor wrote.