Warren Buffett delivers clear inflation warning, slams 'disgusting' business leader behavior in annual letter

Billionaire Warren Buffett issued a clear ostentation informing and slammed 'disgusting' money head behaviour successful his yearly missive to Berkshire Hathaway Inc. shareholders. 

Buffett, 1 of nan world's astir successful investors, cautioned that "fiscal deficits person consequences."

"Our occupation is to negociate Berkshire’s operations and finances successful a mode that will execute an acceptable consequence complete clip and that will sphere nan company’s unmatched staying powerfulness erstwhile financial panics aliases terrible worldwide recessions occur," he wrote of himself and 99-year-old Berkshire Hathaway vice president Charlie Munger. "Berkshire besides offers immoderate humble protection from runaway inflation, but this property is acold from perfect."

"Huge and entrenched fiscal deficits person consequences," Buffett, 92, said.

But don't blasted those deficits connected Berkshire, he indicated.

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"During nan decade ending successful 2021, nan United States Treasury received astir $32.3 trillion successful taxes while it spent $43.9 trillion," he wrote, saying Berkshire paid $32 cardinal successful U.S. firm income taxes during that clip period.

"And that intends – brace yourself – had location been astir 1,000 taxpayers successful nan U.S. matching Berkshire’s payments, nary different businesses nor immoderate of nan country’s 131 cardinal households would person needed to salary immoderate taxes to nan national government," Buffett said. "Not a dime."

FILE - In this May 5, 2019, record photograph Warren Buffett, Chairman and CEO of Berkshire Hathaway, speaks during a crippled of span pursuing nan yearly Berkshire Hathaway shareholders gathering successful Omaha, Nebraska. (AP Photo/Nati Harnik, File / AP Newsroom)

The 92-year-old told investors to attraction connected nan large image complete nan agelong term, signaling that he has mislaid nary of his confidence successful nan U.S. economy.

"I person been investing for 80 years – much than one-third of our country’s lifetime. Despite our citizens’ penchant – almost enthusiasm – for self-criticism and self-doubt, I person yet to spot a clip erstwhile it made consciousness to make a semipermanent stake against America," he said. "And I uncertainty very overmuch that immoderate scholar of this missive will person a different acquisition successful nan future."

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FILE PHOTO: Berkshire Hathaway shareholders locomotion by a video surface astatine nan company's yearly gathering successful Omaha May 4, 2013. (REUTERS/Rick Wilking/File Photo / Reuters Photos)

The missive was accompanied by the Berkshire Hathaway year-end results, which Buffett said reflected a "good" twelvemonth – including a grounds $30.8 cardinal operating profit. The institution besides posted a $22.8 cardinal yearly nett loss.

Notably, successful a summary of nan past year, Buffett issued what he said was an important warning, slamming "disgusting" behaviour by money managers. 

FILE PHOTO: Warren Buffett, CEO of Berkshire Hathaway Inc, pauses while playing span arsenic portion of nan institution yearly gathering play successful Omaha, Nebraska U.S. May 6, 2018.  (REUTERS/Rick Wilking/File Photo/File Photo / Reuters Photos)

"Finally, an important warning: Even nan operating net fig that we favour tin easy beryllium manipulated by managers who wish to do so. Such tampering is often thought of arsenic blase by CEOs, board and their advisors. Reporters and analysts clasp its beingness arsenic well," he said. 

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"That activity is disgusting. It requires nary talent to manipulate numbers: Only a heavy desire to deceive is required." 

Buffett said that deception nether nan guise of "bold imaginative accounting" has "become one of nan shames of capitalism."

READ WARREN BUFFETT'S ANNUAL LETTER – APP USERS, CLICK HERE:

Reuters contributed to this report.