Berkshire CEO Abel Seen Deploying Excess Cash

Dow Jones
08/11

1346 ET - Berkshire Hathaway's new CEO, Greg Abel, isn't scared of opening up the company's wallet, UBS analysts say in a note. They highlight that the company's cash position was $360 billion at the end of 2Q, down from $391 billion at the end of 1Q and driven largely by $19.8 billion in net equity purchases. Berkshire also closed its acquisition of homebuilder Taylor Morrison for $6.8 billion in cash in July, they note. "It appears that Greg Abel is beginning to deploy Berkshire's excess cash," the analysts say. "With a substantial war chest of cash, BRK is currently under earning in our view, with cash deployment increasing the earning power of the company." Berkshire's Class B shares trade up 1.7% at $530.78.

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