Berkshire Hathaway: Buffett sits on cash as Covid-19 changes business models

Even though Berkshire held about $137.3bn in cash, Warren Buffett said it is possible the company may need to lay off some workers in the short term.

Published on:

06 May 2020, 12:09 pm

The Sage of Omaha, Warren Buffett, is closely followed by professional investors, with good reason. He has, over six decades, produced market-beating returns by investing in companies with business models that can stand the test of time. Lately, Buffett has been withdrawing from old favourites and he is also not investing in the stock of his own company. The world is changing rapidly and irrevocably, including for Berkshire Hathaway – an investment trust type vehicle which held its first-ever virtual annual meeting at the weekend. Buffett is also getting used to slopping around in casual gear as he works at home like the rest of us confined to our homes in Covid-19 lockdown. As Morningstar senior equity analyst Gregg Warren underscores: not even Buffett, who has the mantra of buying when others are fearful, has been snapping up undervalued stocks. Instead, he has been sitting on the sidelines in cash, working out what will be different forever and how this will impact on listed companies. – Jackie Cameron