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Strategies & Market Trends : Buffettology

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From: CitizenKane11/7/2016 4:41:08 AM
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Cash at Buffett’s Berkshire Hathaway hits new record with stock market near highs

Berkshire had $84.8 billion in cash at the end of the third quarter

Is Warren Buffett running out of acquisition ideas?

Buffett’s Berkshire Hathaway BRK.B, closed the third quarter with $84.8 billion in cash, a gain of some $13 billion during the course of 2016.

Buffett over the years has not been shy about using the cash spit off from his vast array of holdings to buy companies, such as his most recent acquiree, Precision Castparts. Even excluding the $20 billion he has said he likes to keep as a cushion, Buffett has plenty of firepower to deploy.

In the quarterly report, Berkshire Hathaway says its “long-held acquisition strategy is to acquire businesses at sensible prices that have consistent earning power, good returns on equity and able and honest management.”

The question then is which of those metrics is proving most troublesome.

More at: MarketWatch
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