In the Q4 2004 letter, Berkshire Hathaway, led by Warren Buffett (Trades, Portfolio), outlined its continued strategy of acquiring high-quality businesses that possess sustainable competitive advantages. The fund's investment rationale centers around identifying companies with strong brand recognition and durable economic moats, which can provide consistent earnings power over the long term.
Berkshire Hathaway's approach involves a thorough evaluation of management teams, ensuring they are capable and aligned with shareholder interests. The letter highlights the importance of a long-term investment horizon, allowing the fund to benefit from the compounding growth of its portfolio companies.
During this period, Berkshire Hathaway made strategic acquisitions that align with its investment philosophy, focusing on businesses that can deliver value over decades rather than quarters. The fund's disciplined approach to capital allocation and its ability to leverage its substantial cash reserves for opportunistic investments are key themes in the letter.
The letter also reflects on the broader economic environment, noting the challenges and opportunities presented by market fluctuations. Berkshire Hathaway remains committed to its core principles of value investing, emphasizing patience and discipline as essential components of its success.
Overall, the Q4 2004 letter reinforces Berkshire Hathaway's dedication to building a portfolio of exceptional businesses, with a focus on long-term value creation and shareholder returns.
Read full letter at gurufocus Berkshire Hathaway 2004 Q4 page.
