As he does each year in his letter to investors, Berkshire Hathaway Chairman Warren Buffett explained what's driving the conglomerate's short-term and long-term results. He puts these performance figures in the context of the latest accounting rules, the current investing climate and "The American Tailwind" that he believes supports Berkshire's continued success.

Berkshire's earnings

Berkshire had a return of 11% in 2019 vs. 31.5% for the S&P 500. In 2018, though, Berkshire had a 2.8% return vs. -4.4% for the S&P. After taxes, the conglomerate earned $81.4 billion in 2019: $24 billion of operating earnings, $3.7 billion of realized capital gains and a $53.7 billion gain from an increase in the amount of net unrealized capital gains in its stocks (as per a new accounting rule). The conglomerate's $237 billion in public holdings at year-end included Apple ($73 billion), Coca-Cola ($23.5 billion), Delta Air Lines ($3.9 billion) and Amazon ($1.1 billion) — as well as a host of financial services companies. Check out the gallery above to glean some pearls of wisdom from the yearly letter. READ MORE:

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