Published: Sun, May 05, 2019
Finance | By Kristine Clayton

Berkshire swings to big profit; Buffett laments Kraft Heinz

Berkshire swings to big profit; Buffett laments Kraft Heinz

Shares in Amazon, which have more than doubled since the start of 2017, rose more than 3 per cent in early trading on Friday.

The growing cash pile will likely spur questions about Buffett's outlook for dealmaking at the 2019 shareholder meeting later Saturday. Berkshire Hathaway is known for its value investments. Berkshire Hathaway's Q1 results could be influenced by Buffett finally naming a successor.

"One of the fellows in the office that manage money. bought some Amazon", Buffett was quoted as saying.

But that unsuccessful investment did not stop the company from becoming one of the biggest in the world, with a market value of more than $500 billion and with almost 400,000 employees.

"Yeah, I've been a fan, and I've been an idiot for not buying", Mr Buffett said, according to the report. While too much cash is a high-class issue, it has weighed on Buffett's efforts to outpace the broader markets, with Berkshire shares' total return trailing the S&P 500 over the past decade.

Berkshire often buys the stocks of companies that appear as quite expensive. Approaching $1 trillion valuation once more, Apple stock is up more than 32% this year. After taking losses, Buffett had sold almost all the IBM stock by previous year. The Berkshire investment is contingent on Occidental completing its proposed acquisition of Anadarko.

Always on the lookout for a good deal, Buffett over the years has scooped up a diverse array of companies like the metal components maker Precision Castparts; wholesale supply chain firm McLane Company; underwear maker Fruit of the Loom; carpet manufacturer Shaw Industries; Duracell batteries and the Dairy Queen chain of fast food restaurants.

The Amazon stake further cements the relationship between Berkshire and Bezos's company. He explains, "Mr. Buffett has commented pretty negatively on the airline space over the years, and actually speaks a lot about his poor experience with his U.S. Airways investment".

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