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.
Explore all content
More from the FT Due Diligence channel
Digital assets: Everything you need to know before acquiring
How to get a tech deal right
The rise of private equity in the complex carve-out
With businesses reassessing strategy more than ever before, private equity companies are profiting from the resulting growth in complex carve-outs
The pandemic has stalled activist investors, but for how long?
Activist investors have had a quiet year, thanks to Covid-19. Even a group of investors renowned for their aggressive tactics were reluctant to publicly attack companies reeling from the impact of a global pandemic.
ESG and the rise of sustainable dealmaking
Environmental, social and governance (ESG) issues are fast becoming a central part of how investors and companies are preparing for the future.
Can cross-border transactions fuel growth in a post-Covid world?
As the markets start to stabilise in the fourth quarter of a challenging year for M&A, a number of significant trends have emerged.
Masayoshi Son and the faulty crystal ball
In fairy tales, a crystal ball can be many things: it can reveal the future, but it can also be a malevolent charm.
Healthcare meets tech: fit for purpose
Increasing pressure on healthcare systems, massive tech growth and consumer-led demand are the perfect recipe for strong M&A activity in the emerging healthtech sector.
The transformational impact of tech
As technology continues to reshape large industrial companies, M&A activity in this sector is on the up. It brings with it a transformation of global workforces and a shift in national identities.
Green means go for a new era of finance
With growing pressure on businesses to incorporate ESG in dealmaking, green bonds are proving increasingly attractive. What does growth in this method of sustainable finance mean for the investment market?
Distress to Impress
With indicators pointing to the peak of the current financial cycle, an economic downturn could be imminent, bringing with it an uptick in distressed M&A activity.
The Occidental megadeal that didn’t go quite as planned
M&A is tough. Megadeals can be even tougher. That’s exactly what Vicki Hollub, CEO of Houston-based Occidental Petroleum, discovered with last year’s $55bn takeover of US shale oil producer Anadarko Petroleum.
M&A in the wake of Covid-19: strategies for a healthy business
Several months into this global pandemic and businesses are facing a pivotal moment. Government reinforcement from bailouts and support schemes has been quick to land, but despite this injection of liquidity, the global economy will shrink by 5.2 per cent
Small is beautiful: private equity adapts to the pandemic
Digital transformation driven by M&A: what are the legal implications?
Digital transformation driven by M&A: what are the legal implications?
Digital transformation driven by M&A: what are the legal implications?
Discover more content on the topics that inspire, engage and inform the world we live in today at the FT Channels hub.
Discover moreFT Due Diligence
FT Channels, a partnership destination that combines impactful and enriching multimedia content to spark curiosity and encourage discovery. Each vertical brings expert insights from the Financial Times and our Partners into the most pressing issues of our time.
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.