Opinion | Warren Buffett’s 2020 New Year’s Resolution
Live MintHe’s making a list and checking it twice, but can’t find a takeover target that’s nice. With Berkshire’s cash pile reaching new heights, Buffett has said that just the thought of taking over another company — he’s acquired nearly 200 during his career — causes his heart “to beat faster.” Instead, this chart of Berkshire’s stock performance looks like it’s almost flat-lining: Berkshire shares are on track to end the year up a modest 11%, trailing the S&P 500 index by 20 percentage points. Berkshire’s last large takeover — the kind he dubs “elephants” — was Precision Castparts, an aerospace-parts supplier, for $37 billion; it was completed nearly four years ago. This year, Berkshire merely provided $10 billion of high-interest financing to help another company, Occidental Petroleum Corp., make an acquisition; that barely put a dent in Berkshire’s cash. Buffett and Berkshire Vice Chairman Charlie Munger — who turns 96 on New Year’s Day — were asked during the last shareholder meeting in May whether their successors will have to transition the company from an acquisition-and-investment vehicle into an entity focused instead on returning capital through stock buybacks and dividends.