In the past few years Warren Buffett’s Berkshire Hathaway has been plagued by a growing problem which other companies would kill to have, ie the problem of having too much excess cash. It comes from years of accumulating hugely successful businesses which rake in tons of excess cash each year. The growing cash stockpile is truly an embarassment of riches, one which Warren has had to explain every year to his fellow shareholders.
Well, at this year’s Capitalist Woodstock Festival, where thousands of investors make their pilgrimage to Omaha to hear the Sage speak, he was pleased to finally present a solution to the problem. Berkshire announced their first acquisition of a foreign company. The 4 billion dollar deal showed that Warren wasn’t just dipping his toes to test the water. His latest prize is a family owned Israeli company. He’s also made it clear that this is only the first of many other acquisitions to come. With this acquisition Warren Buffett is effectively announcing to the world that Berkshire Hathaway is now a serious investor in the foreign private equity market.