business

There’s too much cash

Warren Buffett has gone from a stock-buyback skeptic to one of the world’s biggest repurchasers as his own firm becomes his favorite investment in the pandemic.
The famed investor’s  Berkshire Hathaway Inc.  spent the third  quarter  buying back about $9 billion of its own stock, more than it had repurchased in any full year in its history. The buying spree takes the total repurchases in the first nine months of 2020 to $16 billion, and the most recent pace would be the biggest of any U.S. company except  Apple Inc. , which happens to be Buffett’s largest investment.

This is from Bloomberg.  These companies are sitting on so much cash there’s nothing they can do with it. Makes you wonder at all the people who criticise big Australian firms for going along with demands for dividends.