What Will Warren Buffett Invest in Next?

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Oct. 31 (Bloomberg) -- Bloomberg's Noah Buhayar reports on Warren Buffett's investment strategies on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

We're are also watching shares of warren buffett's berkshire hathaway feared that reports earnings tomorrow after the close.

Analysts estimate becomes a will learn over $9,000 a share.

What is more surprising is how much cash the company like this have on hand.

For more on warren buffett's cash pile, i want to bring you know that's a want to bring in noah.

It is territory that it has been in before.

I think the significance and here is just how quickly that catch pile gets replenished.

We were talking a few months ago, berkshire spent more than $12 billion during the takeover of heinz.

How does it get built up like that?

Which business is slowing up most of the cash?

There are a number of injured berkshire has more than 80 operating subsidiaries.

The big ones that stick out are the railroad, burlington northern santa fe.

That has spun off a lot of cash for buffett over the last several years.

You also have subsidiaries and a big utility holding company called madmen american.

When you talk about companies building up this kind of cash, even berkshire hathaway is to come under criticism when he gets to certain levels.

What are the dissident edges to having such a big -- the disadvantages to having such a big cash flow?

Either buffett himself pointing out some of the shortcomings of this.

He has been very public about the fact that this money earns very low interest rate and he tends to keep it a lot in treasuries.

He likes to keep a lot of cash because berkshire has big liabilities.

You want to keep a cushion of about $20 billion, but it has run a bit higher than that for several years now.

The main drawback is that it basically earns nothing.

Right.

Also, of course, but that is always looking for stuff to buy.

-- buffett is always looking for stock to buy.

Is there anything he might use of cash for?

Would never know.

He certainly has the capacity to do appeared one of the analyst i mentioned in my story said about $16 billion free.

That is before going to the debt markets are doing anything else that could increase the size of that acquisition.

That is a pretty big by you can make.

Somewhere.

Noah, thank you so much for coming on to talk about berkshire hathaway cash.

This text has been automatically generated. It may not be 100% accurate.

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