Berkshire Hathaway on Saturday reported record annual profits and boosting its cash stake to US$334.2 billion (HK$2.61 trillion), as Warren Buffett used his annual shareholder letter to caution Washington to spend money wisely and take care of those who get the "short straws in life."

Buffett's admonition came as many investors worry US lawmakers won't rein in soaring fiscal deficits, and could make them worse by extending tax cuts backed by President Donald Trump.

The 94-year-old Buffett, the world's sixth-richest person and arguably its most famous investor, also acknowledged his advanced age, telling shareholders he uses a cane and will spend less time fielding their questions at Berkshire's annual meeting on May 3.

He nonetheless assured shareholders they would be in good hands after he turns over the conglomerate's reins to Vice Chairman Greg Abel, saying the 62-year-old Abel has "vividly shown his ability" to deploy capital.