FT Due Diligence

Where will Buffett find his next blockbuster deal?

Warren Buffett has long been admired for his investment decisions but a multibillion-dollar writedown at Kraft Heinz earlier this year has left a big blemish on his recent performance. The Oracle of Omaha is undeterred, saying he continues to be on the hunt for his next large-scale acquisition. 

In August, Berkshire Hathaway, his sprawling investment conglomerate, reported a 17 per cent year on year increase in second quarter profits to $14.1bn, or $8,608 per class A share. The company attributed just under $8bn of its profits in the period to swings in financial markets and the sales of some of its securities, which offset lower insurance underwriting profits in the three months to June.

High equity valuations have stayed the 89-year-old investor’s hand but — with a record high $122bn cash pile at his disposal — he has no shortage of potential purchases. 

Due Diligence's Arash Massoudi and James Fontanella-Khan explain why Mr Buffett has struggled recently and where he might look for his next big bets.

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FT Due Diligence is a video channel analysing the fast-moving world of M&A, illuminating the trends behind the complex global transactions and how to unlock value from acquisition deals. The channel alternates between independent reporting from FT journalists and insight on global dealmaking from law firm Baker McKenzie.