How Likely Is It That Warren Buffett's Successor, Greg Abel, Will Use a Portion of Berkshire Hathaway's $359 Billion Cash Pile to Buy This Large-Cap Value Stock in September?
The conglomerate's recent activity might be the start of a more aggressive perspective toward the market.
Overview
During the three-month period that ended June 30, Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) was a net buyer of stocks. It spent $20 billion on equity purchases, most notably adding to its stake in Alphabet, a business that is now the company's third-largest position.
This is a reversal from a multi-year streak of the conglomerate being a net seller of stocks, a trend that started in the fourth quarter of 2022. Unsurprisingly, it looks like Berkshire Hathaway is dealing with the limited opportunity set in today's market environment. It currently has a massive cash hoard of $359 billion, significant funds that would ideally be allocated to higher-return assets.
Details
Warren Buffett's successor, Greg Abel, might want to consider this large-cap value stock. It trades 46% off its peak (as of Aug. 28), and it possesses some favorable characteristics. But will Berkshire Hathaway end up buying shares in September?
Source
Originally published at www.fool.com.