Warren Buffett quietly boosted his Japan bets, warned about Fed rate hikes, and defended his tax contributions. Here are 12 key insights from his annual letter.

The latest letter from Warren Buffet contained a lot of information for his followers.

The boom in the stock market caused a surge in deceptive accounting, and that's why Buffett blamed it for. He emphasized that he doesn't buy stocks based on short-term price action after facing controversy over the past year.

The CEO quietly added to his Japanese holdings, highlighted his growing responsibilities, and said he was finding stock buybacks less appealing today.

Here are 12 key takeaways from Buffett's letter:

1. Bets on Japan.

Itochu, Mitsui, and Mitsubishi stakes were increased by 8% to 10% last year. Itochu was the only Japanese trading house that was on the list a year earlier.

2. Misleading profits.

The bull markets breed bloviated bulls, as evidenced by a spike in dubious adjustments to corporate earnings as stocks have soared in recent years. His comment suggests he is concerned about the amount of greed, speculation, and deception in markets.

3. The shares are soaring.

It was the second-best annual performance since 1998 for the stock price of the conglomerate.

4. Delegating responsibility.

Todd and Ted Weschler oversaw $34 billion of investments at the end of the year, up from $21 billion five years earlier. The investor noted that they were responsible for several of the most valuable holdings.

5. Insuring against inflation.

In his letter on Saturday, billionaire investor Warren Buffet predicted that the insurance business of his company would post higher revenue as the economy grows. He probably wanted to assure shareholders that his company can deal with inflation.

6. Weathering climate change.

The BNSF railroad provides a more eco-friendly way to transport goods than using scores of trucks. The investor pointed out that the company has used all of its profits to fund climate-conscious moves, and has become a leading provider of renewable-energy production and transmission.

The criticism of the company's involvement in the fossil-fuel industry and the pressure to be more transparent about its carbon footprint is likely what the chief was responding to.

7. Paying a fair share.

Almost 1% of the total corporate income tax collected by the Treasury last year was paid by Warren Buffet's company. The company pays state and foreign taxes.

The backlash over his taxes was sparked by a ProPublica investigation. He pointed out that in the nine years before he took over the company, it paid $337,000 in taxes, but now contributes $9 million a day.

There are 8. It's backing off from the buy backs.

Over the course of 2020 and 2021, the company spent about $52 billion to purchase 9% of its outstanding shares. His company has only spent a small amount of money on stock buybacks this year, and he thinks the stock is less attractive after the recent rise.

There are 9. Investing is not trading.

Charlie and I are not stock-pickers; we are business-pickers, according to a letter written by Warren Buffet.

He was likely nodding to the idea that his team knew Microsoft was planning to acquire the video-games giant. About three months before the merger was announced, 85% of the stake was purchased.

10. Rates matter.

The Federal Reserve is going to raise rates this year.

He said that interest rates affect the prices of all productive assets, including stocks, apartments, farms, and oil wells.

11. There was nothing to buy.

The billionaire may be preparing to use some of his vast cash reserves. By the end of last year, the ratio of cash and cash equivalents to long-term Treasury bills had shifted to $85 billion and $59 billion from 45 billion and $90 billion at the end of 2020.

As of December 31, $120 billion of the $150 billion in cash held by the company was invested in Treasury bills that were less than a year old. The investor said that he likes to keep 100% of his net worth invested in businesses, and reassured shareholders that the cash heavy periods are never permanent.

There are 12. Bullish on Apple.

Apple has tripled in value and now makes up 40% of the total value of the stock portfolio, which has faced calls to trim its 5.6% stake in the company.

In his letter, he praised Apple CEO Tim Cook and said he wouldn't be cutting his position anytime soon.