Lynch: “Buffett still has a money machine”

May 5, 2024

This weekend saw the “Oracle of Omaha”—Warren Buffett—making his annual appearance at the Berkshire Hathaway shareholder meeting. He reported that the company is in a strong financial position with operating earnings up 39% year-over-year and more than $180 billion in cash on hand. “Buffett still has a money machine,” said Eric Lynch, managing director at Scharf Investments during an appearance on CNBC. “He’s getting insurance premium float for free and basically turning that into 5% yields on that boatload of cash he has in T-bills.” Berkshire Hathaway has been a top holding in the Scharf portfolios for a long time. We have strong conviction in the company and its leadership team, and we believe this is a fantastic higher-for-longer interest-rate play.

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https://www.cnbc.com/video/2024/05/06/warren-buffett-still-has-a-money-machine-investment-management-firm.html

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