Warren Buffett sees 'substantial' investment gains, knocks fund managers

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Warren Buffett

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Warren Buffett's Berkshire Hathaway released its closely-watched annual letter on Saturday, in which the Oracle of Omaha told investors that the holding company's investment gains would continue to be 'substantial' in the coming years.

"Our expectation is that investment gains will continue to be substantial – though totally random as to timing – and that these will supply significant funds for business purchases," Buffett wrote in the letter.

"Concurrently, Berkshire's superb corps of operating CEOs will focus on increasing earnings at the individual businesses they manage, sometimes helping them to grow by making bolt-on acquisitions."

Buffett, one of the world's richest men and widely considered to be the most skilled investor, was also critical of fund managers. He wrote that "both large and small investors
should stick with low-cost index funds."

--Reuters contributed to this article.

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