This is evident from the Numbers for the third quarter. At the end of last year there was already a huge amount of money in cash: 128 billion dollars. But in the first nine months of the year, almost another $30 billion was added.
Bank and short-term loans
The more than $157 billion in cash consisted of almost $31 billion in a bank account at the end of September. The remaining more than 126 billion dollars was invested in US government bonds with a term of up to one year.
The loans that make up the latter amount are therefore repaid in less than a year (this varies per loan), making them almost cash.
If Buffett needs money, for example for an acquisition, these short-term loans are also easy to sell very quickly.
Benefit from high interest rates
Buffett’s Berkhsire Hathaway invests in all kinds of companies. In general, such an investment in shares yields more than if you have the money in the bank.
But lately, the now 93-year-old stock market guru has been unable to find good investments. By investing a significant part of that money in government bonds with a short term, he will receive significant interest income as a result of the increased interest rates.
Gain
Berkshire Hathaway made an operating profit of almost $10.8 billion in the third quarter. That is more than 40 percent more than a year earlier. On the other hand, the shares it owns lost $12.8 billion in value. The value of investments may vary from day to day.
Buffett is a phenomenon in investment land. On balance, it has been doing better than the stock market for decades. He is now 93 years old. His right-hand man Charlie Munger is even older, he will be 100 years old on January 1.
Buffett has a net worth of approx 117 billion dollar.
2023-11-04 17:12:19
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