Kind words for immigrants

In an era when CEOs have been walking a tightrope in trying to address how President Donald Trump’s economic policies will impact their businesses, Buffett — who prominently backed Democratic contender Hillary Clinton in the general election – largely steered clear of making any statements that could be construed as controversial.

Buffett did, however, speak favorably about immigrants, a segment of the U.S. population that has been under the microscope in recent weeks. Trump has moved to block illegal immigration, and issued a controversial travel ban to restrict movement by foreign citizens from seven countries linked to terrorism.

« Americans have combined human ingenuity, a market system, a tide of talented and ambitious immigrants, and the rule of law to deliver abundance beyond any dreams of our forefathers, » the investor wrote.

« This economic creation will deliver increasing wealth to our progeny far into the future. Yes, the build-up of wealth will be interrupted for short periods from time to time. It will not, however, be stopped, » Buffett said.

« I’ll repeat what I’ve both said in the past and expect to say in future years: Babies born in America today are the luckiest crop in history. »

‘Economic traffic cop’

Buffett also lauded what he called the « miraculous » performance of the U.S. economy, a dynamic he expects to help boost the company’s own bottom line. Since 1965, Berkshire has returned a whopping 19 percent annual gain, a function of what Buffett said was a free market that created American prosperity.

« Our efforts to materially increase the normalized earnings of Berkshire will be aided – as they have been throughout our managerial tenure – by America’s economic dynamism. One word sums up our country’s achievements: miraculous, » he said.

« Above all, it’s our market system – an economic traffic cop ably directing capital, brains and labor – that has created America’s abundance, » the investor wrote.

« This system has also been the primary factor in allocating rewards. Governmental redirection, through federal, state and local taxation, has in addition determined the distribution of
a significant portion of the bounty, » he added.

Buffett, one of the world’s richest men and widely considered to be a highly skilled investor, was also critical of fund managers, who he singled out as profiting from charging high fees rather than sound investing and generous returns.

« When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients, » said Buffett, widely considered
one of the world’s best investors. « Both large and small investors should stick with low-cost
index funds. »

–Reuters contributed to this article.