Warren Buffett’s Berkshire Hathaway has invested $90 billion in operations over the last 3 years and still has almost $130 billion in cash.

  • Warren Buffett’s Berkshire Hathaway has invested nearly $90 billion over the past three years.
  • Berkshire’s total share spending reached $107 billion, but the net purchase price was $18 billion.
  • Buffett’s team also spent $60 billion on buybacks and acquired Alleghany for $12 billion.

Warren Buffett’s Berkshire Hathaway has put almost $90 billion into the job over the past three years, but still ended 2022 with a cash pile of almost $130 billion, the latest annual report shows.

The famed investor’s company acquired about $107 billion worth of shares — roughly the market value of Intel — during 2020, 2021 and 2023. However, she also sold $88 billion of shares, which means her net spending was $18 billion.

Meanwhile, Buffett and his team spent a then-unprecedented $25 billion on share buybacks in 2020 and set a new record of $27 billion the following year. In 2022, they bought another $8 billion worth of Berkshire shares, increasing their total buybacks over a three-year period to about $60 billion.

Berkshire also bought insurance company Alleghany last year for about $12 billion. Add up net share purchases, buybacks and acquisition costs, and the conglomerate has deployed $89.5 billion over the past three years.

Buffett’s spending spree is remarkable not only for its scale but also for its context. Stocks have skyrocketed during the pandemic, private equity firms and specialty acquisition companies (SPACs) have pushed up the price of acquisitions, and even Berkshire shares have hit new highs.

This was a disappointing state of affairs for a bargain hunter like Buffett, who has repeatedly lamented the lack of compelling purchases during the pandemic. Berkshire held more than $100 billion in cash and U.S. Treasuries that paid little to no interest until last year. In short, Buffett had money to spend, but little to buy.

In response, the investor and his team expanded their network. For example, they have invested multi-billion dollar shares in the five largest Japanese trading houses. They also bought part of Nubank, a Brazilian fintech company.

What’s more, they have gritted their teeth and ramped up buyouts despite Berkshire’s high share price. Buffett also used his friendship with Alleghany CEO Joe Brandon to buy the executive’s company.

Berkshire’s outrageous spending hasn’t completely cured Buffett’s headache, as his conglomerate still ended 2022 with $129 billion in cash and short-term investments. But the Federal Reserve has raised interest rates from almost zero to 4.5% over the past year, boosting returns on these assets.

Buffett has also pledged to keep at least $30 billion in reserve as he wants to ensure Berkshire never runs out of cash. Berkshire is one of the largest insurance companies in the world, and one day it could suddenly face a tsunami of claims.

Moreover, Buffett always has a reserve in case of difficult times. He made some of his most lucrative deals during the financial crisis, when funding dried up and he was one of the few lenders to stay afloat. He also noted that periods of fear and panic often provide opportunities to buy stocks and businesses at discounted prices.

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