Here’s why Warren Buffett isn’t buying anything – The Wall Street Journal

DUBLIN — It's been three years since legendary investor Warren Buffett bagged himself an elephant. Specifically, that means that he hasn't made a large acquisition since January 2016. Instead he's been confining himself to small deals and equity purchases, such as building up his stake in Apple. What's striking about this is that global and US merger and acquisition (M&A) activity hit an all-time high last year. In other words, in typical Buffett style, he's looking fearful while others are looking greedy. According to the article below, Buffett has been holding off on big purchases because he thinks prices are too high right now. There's a lot of money chasing private equity deals and investors are ready to pay big bucks for good businesses. Since Buffett prefers to underpay for good companies, rather than overpay, he has been keeping his wallet firmly in his pocket. Overall, this suggests a broader market problem – ultra-low interest rates and quantitative easing have created a capital glut, which has been rolling around the world looking for places to invest. Its boosted the prices of assets in most markets, even as underlying economic growth remains sluggish worldwide. The bottom line: Right now, investors are paying more upfront for less cash flow later, because there aren't a lot of good options. Not a great situation. – Felicity Duncan

Warren Buffett Can't Find Anything Big to Buy

By Nicole Friedman

(The Wall Street Journal) – Warren Buffett is always on the hunt for "elephants," as he calls large acquisitions. But three years have passed since he bagged a new one.

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