Buffett’s cash soars to record

1x-1

http://www.bloomberg.com/news/articles/2016-11-05/buffett-s-cash-soars-to-record-as-operating-profit-edges-higher

Warren Buffett is sitting on more cash than ever.

His Berkshire Hathaway Inc. had almost $85 billion on its books as of Sept. 30, according to a regulatory filing late Friday. That’s up from the previous record of $72.7 billion on June 30.

“He’s got a lot of ammo” for investments, said Bill Smead, who oversees about $2.1 billion including Berkshire shares at Smead Capital Management. “Eighty-five billion dollars is a lot of money.”

The cash balance is likely to spark a fresh round of speculation about what the 86-year-old Berkshire chairman and chief executive officer will buy next. Over the past five decades, he’s built the Omaha, Nebraska-based company into a sprawling conglomerate through dozens of acquisitions and stock picks. It now has an equity portfolio valued at about $100 billion and subsidiaries that range from Dairy Queen to NetJets.

Operating earnings climbed 6.6 percent in the third quarter to $4.85 billion, or $2,951 a share, driven by contributions from manufacturing businesses. That missed the average $3,058-a-share estimate of three analysts surveyed by Bloomberg. Net income fell 24 percent from a year earlier when Buffett booked a large gain on an investment in Kraft Heinz Co.

This year, he’s added to his company’s stable of subsidiaries, buying battery-maker Duracell and Precision Castparts Corp., a global supplier to the aerospace industry. The latter was one of his biggest acquisitions ever.

Those two businesses pushed profit at the manufacturing, service and retail segment up 45 percent to $1.7 billion in the quarter. Aggregate earnings fell for the rest of the companies in the group, including chemical unit Lubrizol and toolmaker Iscar, according to the filing.

———-

“He’s got a lot of ammo” for investments, said Bill Smead, who oversees about $2.1 billion including Berkshire shares at Smead Capital Management. “Eighty-five billion dollars is a lot of money.”

it is a lot of money when its cash on hand..

“The cash balance is likely to spark a fresh round of speculation about what the 86-year-old Berkshire chairman and chief executive officer will buy next.”

take your pick warren..

401

Advertisements

~ by seeker401 on November 9, 2016.

One Response to “Buffett’s cash soars to record”

  1. Reblogged this on World Peace Forum.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: