Monday, January 24, 2011

Barron's: Warren Buffett, Mr. Moneybags

Here's a new article in Barron's on what Buffett may do with Berkshire Hathaway's (BRKa) sizable pile of cash and all the cash that continues to pour in. Berkshire could easily be sitting on $ 50 billion by the end of the year.

The article also points out operating profits at Berkshire should hit $ 12-13 billion in 2011, up from $ 11 billion in 2010, and the company could be holding $ 20 billion more of cash and investments than the $ 30 billion they already had as of 9/30/2010.

Later in the article, Berkshire Hathaway is described as "a cash-spewing conglomerate with annual revenue exceeding $135 billion and some top-notch businesses..."

The Burlington Northern deal looks like one of his best as the railroad will earn roughly $ 3 billion this year alone. So based upon that Buffett paid ~11x this year's earnings for that business.

Adam

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