Warren Buffet and Berkshire Hathaway

Warren Buffet is looking for companies to buy, possibly because he doesn’t see many good stocks to invest in:

Berkshire ended the year with $43 billion of cash equivalents, something Buffett called “not a happy position.” In 2003, Berkshire had nearly $36 billion and the year before that, about $12.7 billion.

Forbes takes a look at Warren Buffet’s recent history and gives him a passing grade. The grade is based on overall performance of Berkshire Hathaway and indivicual stock picks. As Forbes notes there aren’t many stocks worth picking these days:

Buffett also says that he has been unable to find companies or stocks worth buying, and warns that the large and growing U.S. current-account deficit will lead to further pressure on the dollar, and to other countries owning a substantial share of U.S. assets. As a result, Buffett has $43 billion in cash on the sidelines and has increased his currency bets (something relatively new for him) against the dollar.

If you’re looking for a fairly safe investment, why not consider Berkshire Hathaway as Motley Fool suggests? Past performance has been strong:

Give it a rest, Buffett. Few investors are going to abandon Berkshire for the vanilla comforts of an index fund, and you have no reason to be ashamed. Over the past 40 years, Berkshire has grown its book value per share at an annualized rate of 21.9%. That’s more than twice the S&P 500’s 10.4% annualized return in that time, but thanks to the magic of compounding, Berkshire’s overall gain in book value per share is actually more than 50 times better than the industry’s leading market gauge.

One Response to “Warren Buffet and Berkshire Hathaway”

  1. Anthony J. Gullo says:

    James, Thankyou for you ideas and well organized blog. Anthony