Buffett's Profit in 2017 and the Outlook for Investors

Where the profit came from

In a letter to shareholders, Buffett explained that the impressive result was due to U.S. tax reform. "Only $36 billion came from Berkshire's operations," the letter states. "The remaining $29 billion was delivered to us by Congress in December, when it changed the U.S. tax code," investing.com reports.

The reform of the U.S. tax system was initiated by Donald Trump. The law, which came into force on January 1, 2018, provides for a significant reduction in tax payments to the state budget, with the maximum corporate profit tax rate reduced from 35% to 21%.

Berkshire Hathaway share performance

Since the last global crisis and up to now, the company's shares have grown as follows:

• 2009-2010 – from $50 to $67, representing 34%
• 2010-2011 – from $67 to $81, representing 20%
• 2011-2012 – from $81 to $80, representing -1%
• 2012-2013 – from $80 to $90, representing 12.5%
• 2013-2014 – from $90 to $119, representing 32%
• 2014-2015 – from $119 to $152, representing 27%
• 2015-2016 – from $152 to $130, representing -14%
• 2016-2017 – from $130 to $168, representing 30%
• 2017-2018 – from $168 to $210 at present, representing 25%

So, since 2009, Berkshire Hathaway's stock market performance has brought investors a profit of almost 420%, which is a fairly good result when referring to stock investments.