By Andrew Frye and Noah Buhayar
Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc. (BRK/A), said he’s “on the prowl” for large acquisitions after record earnings at the company’s railroad and energy units helped build cash holdings.
Berkshire’s cash hoard increased to $37.3 billion on Dec. 31 from $34.8 billion three months earlier, the Omaha, Nebraska- based company said yesterday in it its annual report. Fourth- quarter net income declined 30 percent to $3.05 billion on smaller gains from Buffett’s derivative bets.
Berkshire is seeking “to purchase some large operations that will give us a further boost,” the billionaire said in his annual letter to shareholders included in the report. “We now have eight subsidiaries that would each be included in the Fortune 500 were they stand-alone companies. That leaves only 492 to go. My task is clear, and I’m on the prowl.”
Buffett, 81, has spent more than $35 billion in cash and stock on takeovers since the end of 2009 including the purchases of railroad Burlington Northern Santa Fe and engine-additives maker Lubrizol Corp., both of which had record operating earnings last year. Buffett is focusing on acquisitions and buying publicly traded stocks because current yields on bonds, he said, aren’t enough to compensate for the risk of inflation... read more.
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