Sunday, August 16, 2020

BRK: Idle Rambling -- August 16, 2020

I was surprised how little attention was paid to the 2Q20 Warren Buffett / Berkshire Hathaway quarterly report. Maybe there was a lot of coverage and the fact that I "was on the road" -- maybe it was me, not the business writers. 

I touched on Berkshire Hathaway yesterday. When you look at that short note, what jumps out at you?  I'll give you a minute to think about it. 

Has it been a minute. 

Look at the short clip again: dumped all his holdings in Goldman Sachs, dumped all his holdings in OXY. Dumped the rest of his airlines (four of them: AA, DAL, UAL, and LUV); dumped the majority of his holdings in Wells Fargo. That's a lot of cash.

What did he buy. About a half-billion dollars of a gold miner.

Obviously there was more, but if it ha been "materially" more, it would have been reported. 

So, I woke up with a start this morning (as they say), wondering just how much cash Berkshire Hathaway has on hand.

As an aside, I believe BRK is #3 globally in revenue; only Saudi Aramco and one other company have greater revenue than BRK. Which, of course, is more cash.

Before looking at BRK's cash position, let's be ready to put it into perspective. What other company is known for holding cash hoards? Apple, Inc.

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

Market caps of the current trillion-dollar companies:

  • AAPL: $1.965 trillion
  • MSFT: $1.581 trillion
  • GOOG: $1.025 trillion
  • AMZN: $1.577 trillioin
  • Saudi Aramco:

Which companies are next (same link)?

  • FB: $745 billion
  • BRK-A: $503 billion
  • V: $432 billion

At an annual return of 11% for BRK:

2021

503

1.11

558

2022

558

1.11

620

2023

620

1.11

688

2024

688

1.11

764

2025

764

1.11

848

2026

848

1.11

941

2027

941

1.11

1044

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