Can i buy berkshire hathaway b shares

Can i buy berkshire hathaway b shares

By: kim Date of post: 04.06.2017

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BRK.B Stock Price - Berkshire Hathaway Inc. Cl B Stock Quote (U.S.: NYSE) - MarketWatch

With that in mind, and to get investors to appreciate the sheer enormity of this amount of money, let's take a look at some companies with market values less than Berkshire's current spending power. Furthermore, it's important to point out that Berkshire's cash hoard is much more usable than the cash stockpiles of many other companies, as virtually all of it is held in the United States.

So, for the moment at least, it doesn't represent as much purchasing power as it seems.

can i buy berkshire hathaway b shares

On the other hand, Berkshire could put its cash to work tomorrow fairly easily -- and it would, if the right deal came along. Warren Buffett hates having assets in cash, especially in the current low-interest environment, and would love to use Berkshire's cash to add value for shareholders. Now, Berkshire would never spend all of its cash. Buffett feels it's very important to keep a significant amount of cash, in order to take care of any short-term needs Berkshire may have.

Just to put this amount of cash into perspective, consider what companies Berkshire could acquire in cashtomorrow, based on each company's current equity market capitalization.

These market values are simply based on each company's market cap as of May 8,and don't include any debt held by each company. In addition, in an actual acquisition, the price paid by an acquirer will typically represent a premium over the market value of the company's stock. Whether Berkshire would actually be interested in buying any of these companies is another matter, but this certainly illustrates the enormity of Berkshire's cash hoard.

Buffett responded that he thinks the number is somewhat lower, but he agrees that there is the capacity to do a big purchase. However, keep in mind that in order for Berkshire to be willing to max out its purchasing power, we'd have to be talking about a pretty compelling deal.

can i buy berkshire hathaway b shares

As Buffett puts it, "If we find a really big deal that makes compelling sense, we're going to do it. Assuming Munger is right, take a look at a 60 seconds binary option review brokers of the companies Berkshire could feasibly acquire:.

To be perfectly clear, I don't actually think Berkshire is going to buy Renko bars forex factory or McDonald's anytime soon. I'm just trying to illustrate Berkshire's massive spending ability. However, it's also important to point out that Berkshire is actively looking for ways to can i buy berkshire hathaway b shares its money to work, so an acquisition of this magnitude isn't out of the question.

Berkshire Hathaway B Shares Are Undervalued - Cramer's Lightning Round (1/11/17) | Seeking Alpha

The main reason Berkshire has as much cash as it does is a lack of attractive opportunities. I expect Berkshire to actively search for its next big acquisition, and if one doesn't come, the company has said it would possibly raise its buyback threshold and repurchase some shares, or even pay shareholders a dividend for the first time.

The bottom line is that there are many different ways Berkshire could ultimately decide to put its cash to work, so we'll just have to wait and see. Matthew Frankel owns shares of AXP, AAPL, and Berkshire Hathaway B shares. The Motley Fool owns applecare advisor work from home of and recommends AAPL, Berkshire Hathaway B sharesCostco Wholesale, and MA.

The Motley Fool recommends AXP and Lowe's. The Motley Fool has a disclosure policy. Matt brought his love of teaching and investing to the Fool in in order to help people invest better.

The Biggest Risks of Investing in Berkshire Hathaway Stock (BRK.B) | Investopedia

Matt specializes in writing about the best opportunities in bank stocks, REITs, and personal finance, but loves any investment at the right price. Follow me on Twitter to keep up with all of the best financial coverage! Skip to main content The Motley Fool Fool. Premium Advice Help Fool Answers Contact Us Login. Latest Stock Picks Stocks Premium Services. Stock Advisor Flagship service. Rule Breakers High-growth stocks.

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