$100b Cash: Buf­fett’s Un­wanted Mile­stone

The Economic Times - - Finance & Commodities -

While that fig­ure high­lights the stag­ger­ing mon­ey­mak­ing abil­ity of the busi­nesses he’s col­lected over the years, it’s also a bur­den. Be­cause Berk­shire doesn’t pay a div­i­dend and rarely buys back its own stock, Buf­fett is on the hook to find ways to in­vest those funds. “To put that money to work would be great,” said David Rolfe, chief in­vest­ment of­fi­cer at Wedge­wood Part­ners, a money man­ager over­see­ing about $6 bil­lion in­clud­ing Berk­shire stock. But the “list of com­pa­nies that he would like to own is very, very small.”

Buf­fett ad­dressed the cash pile at Berk­shire’s an­nual meet­ing in May, say­ing he hadn’t put his “foot to the floor” on an ac­qui­si­tion for a while and shouldn’t keep so much money earn­ing next

to noth­ing for long pe­ri­ods.

Be­cause Berk­shire doesn’t pay a div­i­dend and rarely buys back its own stock, Buf­fett is on the hook to find ways to in­vest those funds

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