Berkshire Hathaway in the face of a cash build up

Berkshire Hathaway is dealing with a major issue. Due to the lack of investments throughout the past years, the group’s cash flow has amounted to 122 billion USD which might affect the group’s return.

During the second semester of 2019, Berkshire Hathaway chose to purchase its own shares for 2.1 billion USD, as a temporary solution to this problem. Similarly last year, the group made recourse to this solution to reduce its cash flow and invested in Apple, airline companies as well as banking institutions.

Luckily, the group has the necessary resources to make an important acquisition when the opportunity presents itself

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