"Abel's biggest hurdle will be "finding a way to intelligently allocate" Berkshire's vast and growing cash pile, Alex Morris, the author of "Buffett and Munger Unscripted" and the founder of investment research service TSOH, told Business Insider. Berkshire's trove of cash, Treasury bills, and other liquid assets recently breached $350 billion - a figure that exceeds the market values of Home Depot, Procter & Gamble, and General Electric."
"Abel could use Berkshire's war chest to fund stock buybacks, acquire other businesses, or pay dividends to shareholders, Morris said. Yet Buffett hasn't found any of those to be fruitful avenues in recent years. Berkshire hasn't repurchased shares in its past five reported quarters, only paid a dividend on one occasion under Buffett, in 1967, and has made few material acquisitions in the past 15 years."
Warren Buffett has retired and Greg Abel assumed the role of Berkshire Hathaway CEO. Berkshire holds a cash, Treasury, and liquid-asset balance that recently exceeded $350 billion. Potential uses for the cash include stock buybacks, acquisitions, or shareholder dividends, although those moves have been rare under Buffett. Berkshire has not repurchased shares in its last five reported quarters, paid a dividend only once under Buffett in 1967, and made few major acquisitions in the past 15 years. Abel previously led Berkshire's non-insurance operations, including Berkshire Hathaway Energy and BNSF Railway. Abel must allocate capital intelligently, expand his remit, and preserve Berkshire's culture while making changes.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]