Warren Buffett is currently dealing with a problem that not many entrepreneurs are likely to have at the moment. His investment company Berkshire Hathaway has enormous sums of money and doesn’t know what to do with it. The company has $ 138.3 billion in cash at its disposal. Usually the money is invested in company takeovers. However, Warren Buffett currently sees no company that would be worth investing in, reports the German Press Agency (dpa).
So that the money is not simply in the account, the star investor bought back shares in its own company for 24.7 billion dollars (20.5 billion euros) last year. An enormous effort to improve your own stock performance. The share price is now at 200 euros and is thus higher than a year ago (188 euros on March 2, 2020). Shares were repurchased for $ 9 billion last quarter – Buffett’s shares have never been repurchased at this level.
For the full year of 2020, the company’s net income halved year over year to $ 42.5 billion. Operating profit also fell 9 percent to $ 22 billion. The fourth quarter gives hope with 23 percent growth in profits and a net profit of 35.8 billion dollars. The increase in the share price by 2.4 percent in 2020 is much lower than that of the S&P 500 share index with 16 percent, reports the Handelsblatt. In the past, Buffett had liked to boast of outperforming the Index.