Warren Buffet and his holding company Berkshire Hathaway Incorporated are leaders in the world of investing. When they talk you listen. Buffet just posted his yearly letter. In the letter, he talked about who was going to succeed him and what he is going to do with Berkshire’s cash which amounts to quite a bit.
Berkshire Hathaway has a huge $116 billion in excess cash and U.S. Treasury Bills. With this money, he suggested that Berkshire make at least one if not more large acquisitions. These will be made in order to beef up the non-insurance part of Berkshire’s business.
In the letter, he also talked about the one million dollars that he received from winning the bet he had with Ted Seides. The bet was that he could pick S&P 500 index stocks that would outdo a basket of hedge funds. Buffet did donate the one million dollars to charity but Berkshire still had income from the stocks.
There was no talk about the Federal Reserve’s crackdown on Berkshire holding Wells Fargo & Company. Nor was there any talk about Buffet’s collaboration on health care with the company Amazon.com.
At the end of the letter, Buffet addressed who was likely to succeed him at Berkshire. He stated that Berkshire was lucky to have Ajit Jain and Greg Abel working for the company.
If Buffet has as much talent in picking leaders as he does in picking stocks then Berkshire Hathaway is in good hands. The company will continue to grow as it has during Warren Buffet’s leadership.