Warren Buffett Can’t Spend His Cash Fast Enough
Warren Buffett is perhaps the world’s most well-known billionaire. With his company, Berkshire Hathaway, topping the charts of preferred stocks, and his personal fortune growing by the second, the man can’t seem to make his cash pile any smaller.
Berkshire Hathaway Will Post Profit
According to Barclays Plc, Berkshire Hathaway will post a massive profit of $4.3 billion for the third quarter. This will be added to the $35.7 billion stash that Buffet already has stockpiled in the company’s coffers as of June. There was also the $4.4 billion loan to Mars Inc. that Buffet used to help them purchase Wm Wrigley Jr. Co. five years ago, which was paid back this quarter.
Buffet On Acquisition Spree
This year has marked another trademark year of Buffett and Berkshire buying out companies, and acquiring new holdings. The gargantuan investing firm already invested $12.3 billion in the HJ Heinz deal, as well as spending 5.6 billion on a Nevada electric utility. There have also been many smaller purchases since December of last year.
Cliff Gallant of Nomura Holdings Inc. says, “It’s a high class problem. The year’s not up. I wouldn’t be surprised to another deal of some sort.”
Buffett’s Cash Stash
Buffett has said in the past that he likes to keep $20 billion on hand should his reinsurance investments have the need to pay large claims. This is one of his biggest investment arms, and protecting it is key to Berkshire’s stability. Having this kind of cash on hand allows Buffet to swing huge investment deals while others wait until they’re sure the water is safe.
The pile reached a level of $49.1 billion in March, but was dropped following the Heinz acquisition. On Oct. 16 Buffett claimed to have $40 billion on hand, but has yet to announce plans for the huge cash pile.
Berkshire Is Sitting Pretty
At the moment, analysts believe Berkshire to have enough cash on hand for a $15 billion acquisition. This counts the cash from the Mars loan and the promises of purchasing other companies. Since this report on October 4th, Berkshire purchased a beverage dispenser business for $1.1 billion.
Having the issue of too much money to spend may be a reality for Warren Buffett. No doubt many Americans would love to have that problem. However, it is doubtful whether most of us would be able to make our cash post a return the way Buffett has. It will be interesting to see what his next purchase will be.
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