Billionaire Warren Buffett wants investors to be wary of the high fees Wall Street r'outinely charges because of the damage they do to investment returns, and he emphasized his confident outlook in the US economy. Buffett devoted a section of his annual letter to Berkshire Hathaway shareholders Saturday to explaining again the benefits low-cost index funds have over most other investments. He says he estimates that wealthy investors who use high-priced advisers have wasted over $100 billion over the past decade. Buffett again praised the country's market system for its ability to allow Americans to continue building "mind-boggling amounts" of wealth. Buffett devoted most of his letter to detailing the evolution of Berkshire and the performance of the Omaha, Nebraska-based company last year. His annual letters are always well read. Warren Buffett's company said fourth-quarter profit improved 15 percent, but most of the gains came from the paper value of Berkshire Hathaway Inc.'s investments and derivative contracts. The Omaha, Nebraska-based conglomerate released its latest results Saturday along with Buffett's annual letter to shareholders. Berkshire said it earned $6.29 billion, or $2.55 per Class B share. That's up from $5.48 billion, or $3.65 per Class B share. The analysts surveyed by FactSet expected earnings per Class B share of $1.82 although they generally exclude investments and derivatives from their estimates. Berkshire said those operating earnings totaled $1.78 per Class B share. Berkshire's investments and derivatives were worth roughly $1.2 billion at the end of the quarter, up from $399 million. That overshadowed the 6 percent profit decline at Berkshire's operating businesses. — SG
