Warren Buffett has more cash to play with than ever before
Warren Buffett’s third quarter in many ways marked a new peak.
The legendary investor now has more cash than ever to play with: $128 billion.
Mr Buffett’s cash pile climbed again in the quarter, and his liquidity brings him potentially lucrative deals like crisis-era bets on Goldman Sachs Group and General Electric, and the third quarter’s $10bn investment in Occidental Petroleum that allowed a deal with Anadarko Petroleum.
The period also provided examples of the limits Mr Buffett faces in trying to put cash to use to continue the outsized growth that made him famous.
Mr Buffett acknowledged as much with this year’s struggles at Kraft Heinz, as he said in February ditching a stake of more than $10bn would be complicated.
The widest performance gap between Berkshire and the S&P 500 in recent years could give Mr Buffett more incentive to jump into the market for his own stock.
«All the more reason to question, given the valuation for the stock, why they haven’t been more aggressive in the market buying back their own shares. It could represent the best use of cash right now and it could represent the easiest path for them to deploy capital.»