What could Warren Buffett do with a spare $116 billion?
BERKSHIRE HATHAWAY NEEDS TO SPEND. HERE’S A SHOPPING LIST:
In his annual letter to Berkshire Hathaway shareholders, billionaire investor Warren Buffett said he is seeking out “huge acquisitions” to winnow down the firm’s US$116 billion in cash and other low- return holdings.
While spending $ 100 billion may not seem like all much in an age of multitrillion government deficits, rest assured that it is an unbelievable sum of money. A quick reminder of what 12 figures can do:
BUY ALL THE GOLD EVER MINED IN THE KLONDIKE
Ever since the Klondike Gold Rush sent thousands of stampeders into one of the most inhospitable corners of the known world, an estimated 20 million ounces of gold have been pulled out of the Yukon territory. At an average gold price per ounce of US$ 1,328.10, this means that every nugget ever sifted out of Yukon soil adds up to only US$26.6 billion, leaving Berkshire Hathaway more than enough to buy up a few other historical gold rushes.
BUY SEATTLE
In 2014, the real estate website Redfin calculated how much it would cost to buy up all the residential real estate within select U. S. cities. For instance, all of Boston’s homes could be had for US$ 76.6 billion, while the homes in Atlanta cost US$ 78.1 billion. All of Seattle’s 241,450 condos and houses, meanwhile, had a market value of US$111.5 billion. The value has almost certainly gone up in four years, but maybe Berkshire Hathaway could score a discount for buying in bulk.
BUILD A BRIDGE BETWEEN NEW YORK AND WASHINGTON
In 2011, China saw the opening of the 26.7- kilometre Jiaozhou Bay Bridge, the reigning titleholder as the world’s longest bridge. The highest estimated cost for the bridge is US$ 8.8 billion, which works out to US$ 329.6 million per kilometre. Thus, US$ 116 billion could theoretically buy 351 kilometres of bridge, enough to build an elevated causeway from New York City to Washington, D.C.
RENT FRENCH AND BRITISH MILITARIES FOR A YEAR
In relative t erms, t he ancient Roman Crassus is considered to be one of the wealthiest men in history. He is said to have claimed that nobody is truly rich until they can buy an army. Berkshire Hathaway could i ndeed buy an army, or they could simply Airbnb a military from someone else. In 2016, France spent US$ 55.7 billion on its military, while the U. K. spent US $ 4 8 . 3 billion. Ta ke n together, the annual upkeep of two of history’s most conquest- happy militaries is a mere US$104 billion.
BUY OUT THE ROYAL FAMILY FIVE TIMES OVER
In the U.K., title and prestige has traditionally been tied very closely to one’s land holdings. As a result, it makes sense that the country’s head family should have a particularly glittering real estate portfolio. Thanks to skyrocketing U. K. real estate prices, the Crown Estate is worth US$ 18.5 billion. The Crown Estate is not the Queen’s private property, but she gets a cut of its revenues each year. Presumably, Berkshire Hathaway could secure at least a handful of peerages if it went on an all- out buying spree of British land.
FILL EVERY GAS TANK IN THE UNITED STATES FOR FOUR MONTHS
According to t he U. S. Energy Information Administration, the United States consumes 391.73 million gallons of gasoline per day. The average U. S. gas price was US$ 2.517 on Monday, according to the American Automobile Association. This puts daily U. S. gas consumption at US$ 985,984,410, meaning that US$116 billion could effectively power every boat, car and lawn mower in the United States for more than three months.
FUND ILLEGAL DRUG HABITS IN THE U. S. FOR ONE YEAR
According to the Rand Corporation, the United States spends about US$ 100 billion per year on four major illicit drugs: cocaine, heroin, marijuana and methamphetamine. This means that one of the country’s most murderously cutthroat industries is cumulatively handling less cash per year than is at the command of Berkshire Hathaway. Unlike assets in the illegal drug trade, Berkshire Hathaway’s holdings don’t put Warren Buffett at high risk of getting capped.
BUILD AN ARMADA OF TITANICS
The RMS Titanic, t he world’s largest moving object at the time it sunk in 1912, was built for the then-equivalent of US$7.3 million. As British shipbuilding is a bit more expensive these days, that works out to an inflation-adjusted US$184 million — enough to build the ship 630 times over. At a length of 269 meters each, this is 170 kilometres worth of Titanics, which is enough Titanics to build a bridge between Newfoundland and Nova Scotia.
GO BACK IN TIME AND FREE 770,000 SLAVES
At the time of the U. S. Civil War, enslaved humans were the largest single asset in the United States. According to an analysis by the website Measuring Worth, a slave in 1860 could cost the modern equivalent of US$ 150,000. Using this top measure, US$ 116 billion could purchase the freedom of 773,000 slaves; about a fifth of the slave population of the antebellum United States. While we’re discussing time travelling humanitarianism, Berkshire Hathaway could also go back in time and buy enough food imports to stop the Irish potato famine.