Star investor Warren Buffett is known to be sitting on a big pile of money. But how clear it is now: In the third quarter of 2021, his holding company Berkshire Hathaway raised about $143 billion in cash. However, Buffet only invests in his own stock.
Warren Buffett is considered one of the richest people on the planet. With his holding company Berkshire Hathaway, the 91-year-old American generated nearly $6.5 billion in operating profit in the third quarter of 2021.
The quarterly report also revealed how high the property’s cash reserves are: the company had about $143 billion in cash reserves by the third quarter of 2021. But the largest investor is still not investing in acquisitions of third-party companies.
Buffet has invested more than $20 billion in its private equity since the beginning of the year
Instead, Buffet is buying up piles of stock in its own company — no surprise to people familiar with Buffet’s investment strategy. Because the star investor in principle does not buy stocks that are currently considered overvalued. The global stock markets are currently on the rise.
As a result, Buffet is currently investing heavily in shares in his holding company. In the most recent quarter, he put nearly $7.6 billion of cash reserves into stock buyback programs. How is that “HandelsblattReportedly, in the first nine months of this year, the billionaire has already invested $20.2 billion in private equity — more since 2018 than in Apple Securities.
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An investor’s target is likely to artificially reduce the stock offer of Berkshire Hathaway. As a rule, stock prices rise significantly after such buyback programs.
Berkshire Hathaway does not live up to analyst expectations
Only on Saturday Berkshire Hathaway announced that it made a much lower profit than analysts had expected in advance. Due to ongoing supply chain issues, profits have not grown as much as expected. The holding company is still posting a profit increase of about 20 percent, but the tense situation in global markets is also affecting the performance of the buffet company.
Due to difficulties in global supply chains, costs for materials and shipping, among other things, have risen in many of the companies the company owns. Berkshire Hathaway said housing companies are particularly affected.
Expenses related to damages from Hurricane Ida or floods in Europe have burdened the company’s insurers, which are involved in more than 90 companies.
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