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Berkshire has plenty of cash, but market is expensive

Published 11/08/2016, 02:20 PM
Berkshire has plenty of cash, but market is expensive
BARC
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BRKa
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PSX
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  • Berkshire Hathaway (NYSE:BRKa) (BRK.A, BRK.B) reported a record cash hoard of $85B at the end of Q3. Warren Buffett likes to hold $20B as a cushion, says Barclays (LON:BARC)' Jay Gelb, leaving him more than $60B to put to work. Barron's Andrew Bary says the practical number is smaller - closer to $45B - but that still leaves enough for an "elephant-sized acquisition."
  • That's only if he can find the right price, and a stock market at record highs could make that difficult. Last year's Precision Castparts purchase for $37.2B was Berkshire's largest acquisition to date. One speculated target is Phillips 66 (NYSE:PSX). Its current market cap is just over $42B.

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