Warren Buffett’s company has enough funds to buy Tesla, Starbucks or McDonald’s

386

Warren Buffett’s company – Berkshire Hathaway – can afford to buy almost any public company in America after fears of coronavirus have undermined their market capitalization in recent weeks.

The billionaire conglomerate had at the end of December $ 125 billion in cash, cash equivalents and short-term investments in US Treasury bonds.

Assuming this figure has not changed, Berkshire Hathaway may buy:

  • one of more than 450 companies in the S&P 500. For example, McDonald’s ($ 125 billion) or PayPal ($ 118 billion).
  • more than 80 companies in the Nasdaq 100. For example, Tesla ($ 97 billion) and Starbucks ($ 82 billion)
  • and 11 companies in the Dow 30. For example, Boeing ($ 102 billion), IBM ($ 100 billion) or Goldman Sachs ($ 57 billion).

True, Buffett appreciates financial security and vowed to never run out of Berkshire Hathaway cash.

“We believe that part of our assets is inviolable. We commit ourselves to always have at least $ 20 billion in cash to protect against external disasters, ”he said in a letter to shareholders in 2018.

Source