But many of Berkshire’s more than 90 businesses, such as the Geico auto insurer and BNSF railroad, performed well, and quarterly operating profit rose 71 per cent.

Buffett uses his shareholder letters to focus on Berkshire’s operating businesses, tout the strength of the US economy, and criticise thinking and business practices that get in the way.

The 88-year-old said Berkshire’s success has been in part a product of “the American tailwind” that has enabled the country to enjoy “almost unbelievable prosperity”.

He said that since he began investing in 1942, that prosperity has been overseen by seven Republican and seven Democratic presidents, through times of war and financial crisis, and gained in a bipartisan manner.

Trump often takes credit for upbeat news on the economy and stock market, sometimes tying them to his economic policies.

Buffett, who supported Democrat Hillary Clinton in her 2016 White House run, said no one person should claim credit when things go well.

“It is beyond arrogance for American businesses or individuals to boast that they have ‘done it alone’,” Buffett wrote.

Buffett also made a possible oblique criticism of Trump’s bragging about US economic performance, including relative to other countries such as China, where Berkshire invests in electric car maker BYD Co.

The United States, according to Buffett, should “rejoice” when other countries have bright futures.

“Americans will be both more prosperous and safer if all nations thrive,” he wrote.

“At Berkshire, we hope to invest significant sums across borders.”

In his letter, Buffett says he hungers for an “elephant-sized acquisition”, but the most tempting targets are too expensive for his tastes.

“In the years ahead, we hope to move much of our excess liquidity into businesses that Berkshire will permanently own,” he said.

“The immediate prospects for that, however, are not good: Prices are sky-high for businesses possessing decent long-term prospects.”

At the moment, Berkshire Hathaway has more than US$100 billion in liquid assets that would be rapidly available if an opportunity should present itself.

The investor remained silent on who might succeed him as Berkshire’s CEO but he was unstinting in his praise of his two lieutenants, who since 2018 have taken the reins of essential day-to-day operations: Ajit Jain and Greg Abel.

The decision to give them a more central role was “overdue”, he said. One of the two men is expected to succeed Buffett.

“Berkshire is now far better managed than when I alone was supervising operations,” he said.

Reuters and Agence France-Presse