Buffett’s company backed Scripps, bought shares of Snowflake and Bank of America, bought assets from Dominion Energy and bet on Japanese stocks.
- Warren Buffett came under heavy criticism for failing to deploy Berkshire Hathaway’s vast cash reserves when markets fell earlier this year.
- The billionaire investor and his team responded by announcing more than $ 19 billion in investments for this quarter alone.
- Berkshire bought $ 2.1 billion in Bank of America shares and $ 735 million in Snowflake shares, spent about $ 6 billion on 5% stakes in five Japanese trading houses, a report concluded. $ 10 billion deal for Dominion Energy’s natural gas assets and is expected to invest $ 900 million in Scripps.
- The spending frenzy signals a bullish turn for Berkshire after it abandoned its stakes in the “big four” US airlines and reduced its financial holdings in the last quarter.
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Warren Buffett has been criticized as ‘failed’ and overly cautious when he failed to take advantage of the coronavirus crash earlier this year. The famous investor and his team responded by announcing more than $ 19 billion in investments for this quarter alone.
Buffett’s Berkshire Hathaway conglomerate struck a $ 10 billion deal to buy most of Dominion Energy’s natural gas assets in early July. He invested $ 2.1 billion in Bank of America for 12 consecutive trading days until August 4. Weeks later, he revealed 5% stakes in Japan’s five largest trading houses – an expenditure of around $ 6 billion in the previous 12 months.
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Berkshire’s next big move was the purchase of $ 735 million of Snowflake shares when the cloud data platform went public earlier this month. Finally, Scripps revealed last week that Berkshire was giving it $ 600 million in exchange for preferred stock and a warrant to buy $ 300 million of its common stock in the future.
The five investments total around $ 19.4 billion in cash and debt commitments, which is a small but significant fraction of Berkshire’s $ 147 billion cash flow at the end of June.
The wave of buying suggests that Berkshire is back on the offensive after selling off its stakes in America’s “big four” airlines and reducing many of its financial holdings in the last quarter. Additionally, Buffett’s company appears to be casting its net more broadly, as it has largely avoided foreign stocks, tech companies, and IPOs in the past.