Why Isn't Buffett Putting More of His Cash to Work?
Throughout history, few investors have been more successful than Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett. Since 1965, Berkshire Hathaway's stock has averaged an annual gain of 20.3% for shareholders. That's more than double the 10% total return, inclusive of dividends, that the S&P 500 has averaged over this same period. Over 55 years, this works out to a 19,784% gain for the S&P 500, and a 2,744,062% for Berkshire Hathaway stock.
Game, set, match: Buffett.
Yet the Oracle of Omaha hasn't behaved like his usual opportunistic self over the past 4 1/2 years. Since his company acquired Precision Castparts in early 2016 for $32 billion, Buffett and his investing lieutenants Todd Combs and Ted Weschler haven't been doing a lot of buying. At the beginning of the third quarter, Berkshire Hathaway's cash pile stood at an all-time record $147 billion.
Source Fool.com
