Berkshire earnings: Cash piles up


Cash residing in Berkshire Hathaway's (BRK.B +1.3%), (BRK.A +1.1%) coffers rose to $55.5B as of June 30, more than double the amount Warren Buffett has said he likes to keep on hand should the company's insurance units face unusually large claims.

Berkshire's size is not just a hindrance to finding a needle-moving deal, but so is the perky stock market. Also, Berkshire isn't the only one out there looking for deals. "The amount of dry power is unprecedented," says a private-equity advisor, and the pile of money (estimated at $1.16T) has led to warnings from Blackstone's Tony James and Apollo Global's Josh Harris about paying too much for acquisitions.

Previously: Berkshire Hathaway reports Q2 results

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Comments (12)
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
     
    Yeah, hopefully Berkshire can snag an acquisition/partial acquisition of significance by the end of the year.

     

    We've had the TV station, Phillips 66 specialty pipeline drag limiting chemical business, but not much other success.
    4 Aug 2014, 10:14 AM Reply Like
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
     
    Oh I also forget that childrens bandaid company Oriental Trading bought from Staples!
    8 Aug 2014, 02:21 AM Reply Like
  • afali
    , contributor
    Comments (8) | Send Message
     
    in my opinion, the problem is the continued perception that we are always waiting on what buffet has to say. Maybe it's time buffet's successor starts coming into the limelight and tell us what they intend to do with that quantum of cash. We need to see how the new management is going to carry the company forward...
    4 Aug 2014, 11:17 AM Reply Like
  • jems2138
    , contributor
    Comments (15) | Send Message
     
    I don't think Warren is anyway near retirement, so no new management yet. Thank
    Heaven.
    4 Aug 2014, 11:30 AM Reply Like
  • U2A Ventures
    , contributor
    Comments (297) | Send Message
     
    Cash on hand for WB means he is looking for his next buying opportunity.
    4 Aug 2014, 01:07 PM Reply Like
  • DanielJRoche
    , contributor
    Comments (369) | Send Message
     
    Mattel is reasonably cheap, Hershey is reasonably cheap, John Deere is reasonably cheap. Three possible candidates. But if history is any guide, nobody outside of a tight clutch of insiders will know anything until the announcement, so speculation is bootless!
    4 Aug 2014, 01:37 PM Reply Like
  • bibol11
    , contributor
    Comments (213) | Send Message
     
    Yes he has all this cash. He uses a lot of it on high risk companies. Charges high interest on loans. So far these companies recover. One of these times they will not and he will lose billions
    4 Aug 2014, 04:26 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (6290) | Send Message
     
    Anyone think (NYSE:BRK.B) may buy another food company like (NASDAQ:SBUX) or (NYSE:TSN)? Or maybe (BRK.B) will buy more newspapers? I would love if they buy (NYSE:NEWM), which owns many newspapers are radio stations.
    4 Aug 2014, 09:18 PM Reply Like
  • evan.prospect
    , contributor
    Comments (702) | Send Message
     
    Would BRK.B ever look at a company like RIG?
    5 Aug 2014, 04:57 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (6290) | Send Message
     
    Which is a better buy: (NYSE:RIG), (NYSE:SDRL), or (NASDAQ:HERO)?
    5 Aug 2014, 06:55 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
     
    I hope BRK gets its hands on more TV stations, not newspapers. TV stations are effective franchise monopolies with network-driven content.
    5 Aug 2014, 09:00 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (6290) | Send Message
     
    Yes, buy (NYSE:NEWM). "Its primary products include 87 daily newspapers with total paid circulation of approximately 739,000; 243 weekly newspapers with total paid circulation of approximately 293,000 and total free circulation of approximately 699,000; 99 ‘shoppers’ with total circulation of approximately 1.9 million; 356 locally focused Websites and 346 mobile sites with approximately 123 million page views per month; 6 yellow page directories with a distribution of approximately 432,000 that covers a population of approximately 1.1 million people; and propel digital marketing services. The company also produces niche publications that address specific local market interests, such as recreation, sports, healthcare, and real estate. In addition, it offers advertising services to small businesses, corporations, government agencies, and individuals. The company's print and online products provide local market news and information that covers various topics, such as local news and politics, community and regional events, youth sports, opinion and editorial pages, local schools, obituaries, weddings, and police reports. It reaches approximately 12 million people per week and serves approximately 130,000 business customers."
    6 Aug 2014, 08:54 PM Reply Like
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