(May 6, 2017) A series of scandals at Wells Fargo has Buffett defending Berkshire’s big stake in the bank. He also makes the case for his Coca-Cola habit, explains why he changed his mind on the airline stocks he once called a “death trap,” criticizes “financial helpers,” and reveals the stock he was “too dumb” to even consider buying.
Berkshire's 10.7 percent increase in per-share book value lagged the S&P's 12.0 percent advance, but its stock price gain of 23.4 percent easily outperformed the index. In his annual letter, Buffett wrote about winning a 10-year wager that a low-cost index fund would outperform a large group of high-fee hedge funds. His bottom line: "It will usually be the managers who reap outsized profits, not the clients."READ 2016 LETTER (DATED FEB. 25, 2017)