Billionaire investor Warren Buffet is reportedly monitoring businesses that are suffering due to an unprecedented COVID-19 outbreak to offer help, particularly in the sectors of travel, lodging, and entertainment.
Tuesday, March 31, The Wall Street Journal has spilled Warren Buffet’s plan to offer monetary assistance to hardest-hit companies amid the ongoing pandemic. The investor, along with its conglomerate’s US$128 billion [AU$213 billion], has been eyeing to acquire large-scale business for years now.
Hotels, airlines, and other ventures may expect financial loans
Warren Buffet, the Berkshire Hathaway owner and CEO, is reportedly considering the possibility of offering recovery stimulus to companies hit by the coronavirus outbreak.
Companies like hotels, casinos, airlines, cinemas, and other businesses in the travel and leisure industries are likely to receive funds.
According to the newspaper, Buffet has been keeping track of businesses suffering greatly from the sudden plunge of sales as the current health crisis halted non-essential businesses. The investor is also said to show “eagerness to help” by giving monetary lifelines if needed.
In the airline sector, Buffet has picked companies like Delta, United, and Southwest. Cruise lines like Royal Caribbean, Carnival, and Norwegian could also receive help as they are likely ineligible to apply for bailouts under the U.S. government.
Moreover, Cinema chains like AMC Theatres and Cinemark; hotel and casino groups like Hilton, Marriot, and Caesars Entertainment; and theme-park operators, including SeaWorld, are also some of the companies Warren Buffet are eyeing.
The Berkshire Hathaway owner is looking to assist with cash loans or investments.
Buffet eyeing to acquire large-scale businesses, affords to buy Tesla and PayPal
In his annual letter last 2019, Buffet remained vocal on its continuous hunt for a sizeable investment. But last year seemed like a bad time to acquire one, citing it as a “disappointing reality” as many of his target firms are being sold at sky-high prices.
Based on a report conducted by Markets Insider, the investor can afford to buy any U.S. public company, particularly during this coronavirus sell-off. It says Buffet’s Berkshire Hathaway fund has surpassed the market capitalizations of over 450 firms in the S&P 500 and 11 companies in Dow.
The billionaire’s conglomerate holds almost $125 billion cash pile as well, aside from the short-term investments he earned by the end of December last year.
From a bird’s eye view, Buffet could buy giant companies like IBM ($100 billion), PayPal ($118 billion), Tesla ($97 billion), and Boeing ($102 billion) without breaking his bank or getting a loan.
Equipped with his Berkshire’s $125 billion cash pile, the coronavirus sell-off seems perfect timing for Buffet to pursue an elephant-sized acquisition.
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