Warren Buffett is set to publish his annual shareholder letter on Saturday, and investors will likely be watching for two main takeaways from the Berkshire Hathaway chairman and CEO.
For over five decades, Berkshire Hathaway shareholders have received an annual letter detailing Buffett's plans for the company, reflections and market wisdom. On the firm's website, letters since 1977 are archived and available to the public; the letter is widely read by the broader investment community each year.
Mark Tepper, president and CEO of Strategic Wealth Partners, said investors will be looking for two key themes in the document, which will be released a day after Berkshire Hathaway's quarterly earnings results. Here's what he's watching in the letter, which he calls an "absolute must-read" for anyone who is passionate about investing.
• The first is any commentary regarding Buffett's eventual successor. Reports say Berkshire executives Gregory Abel and Ajit Jain, who were appointed to the company's board as vice chairs in January, could be in line.
• The second theme likely on investors' minds will be insight as to what the company will do with its massive cash pile of around $100 billion. The company has not paid out any dividends during Buffett's tenure, so the market may wonder whether that will happen in a post-Buffett era.
Bottom line: Investors will be watching in Buffett's shareholder letter for insight into the company's massive cash pile, as well as who may succeed Buffett as CEO someday.
