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Berkshire's Abel Gets $17.5 Million After Incentive Plan Expires

Warren Buffett chairman and CEO of Berkshire Hathaway Inc. walks with Maria'Mel Lagomasino CEO of financial advisory firm WE Family Offices

"Both large and small investors should stick with low-priced index funds". Last year, Berkshire added to that collection of businesses by closing on its acquisition of Precision Castparts for more than $30 billion. While billionaire investor and investment guru's firm more than doubled its stake in tech bellwether firm in current year, a board member has sold almost half of his holdings in the current month. "The degree to which people's lives center around the product his huge", Buffett said of the Apple iPhone.

Second, the wealthy think their money "should buy them something superior compared to what the masses receive" and that makes it hard to "meekly [sign] up for a financial product or service that is available as well to people investing only a few thousand dollars".

He said "1,000 monkeys would be just as likely to produce a seemingly all-wise prophet" as 1,000 highly paid professionals.

Investors in Apple seemed to react with caution to Buffett's announcement that he bought a massive new quantity of shares.

Buffett also praised managers who run Berkshire's businesses, name-checking several in the company's insurance segment.

The growth in the company's book value - that is the company's assets minus its liabilities and Mr Buffett's preferred measure of Berkshire's performance - was 10.7% in 2016, while the S&P 500 rose 12.0%. Despite the fact that indexes are trading in record territories, Buffett said the USA stock market was cheap with interest rates at current levels.

For years, Buffett warned investors away from the industry.

Berkshire, which has stakes in Kraft Heinz, Coca-Cola and a number of other companies, and recently invested in Apple, has benefited from the Wall Street rally after Trump's election. However, for example, in 2016 Berkshire Hathaway bought large stakes in Apple (AAPL - Free Report) and sold a majority of their stake in Wal-Mart (WMT - Free Report) in an active charge to find yield. "And they got that century out of the way, I hope".

Buffett's chosen index fund has recorded an 85.4 percent gain over than time while the hedge funds delivered an average of 22 percent.

Omaha, Nebraska-based Berkshire Hathaway's operating earnings for the quarter declined to $4.38 billion from $4.67 billion in the a year ago period.

WARREN Buffett on Saturday mounted a forceful and upbeat defense of the prospects for American business, as his Berkshire Hathaway Inc reported a higher quarterly profit though operating income fell. At the end of the third quarter, it was seen that Berkshire Hathaway has increased its shares in Apple from 15.2 million to 57.4 million.

Buffett has long recommended that investors avoid airline investments because they required significant capital and delivered poor returns.