Billionaire Bill Ackman lays out why he invested nearly $700 million in Berkshire Hathaway
William “Bill” Ackman, founder and chief executive officer of Pershing Square Capital Management LP, at the Robin Hood investors conference in New York in 2013.Hedge fund billionaire Bill Ackman of Pershing Square Capital Management is riding high after a multiyear stretch of trouble.
Berkshire Hathaway owns high cash balances and has a tendency to do well in bad markets as Buffett and Munger, icons in American business, deploy funds at rock-bottom prices. Berkshire’s cash pile hit a record $122 billion in the second quarter. With markets now falling, it’s hard to not see new investment opportunities on the horizon.
Berkshire’s primary asset is the world’s largest insurance business, which we estimate represents nearly half of Berkshire’s intrinsic value. In its primary insurance segment, Berkshire focuses on the reinsurance and auto insurance segments.
Since the end of 2007, we estimate that Berkshire has averaged a nearly 7% annual rate of return on its insurance investment portfolio while holding an average of 20% of its portfolio in cash.
Berkshire’s regulated utilities business primarily consists of a handful of well-managed, highly efficient energy utilities that earn a reasonable return on equity while satisfying their customers’ and regulators’ desire for low energy prices. Berkshire’s regulated utilities business is relatively insulated from economic downturns due to the essential nature of the service it provides, which has allowed it to steadily grow its earnings during all phases of the economic cycle.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bill Maher Talks Jeffrey Epstein Death, Conspiracy Theories: 'He Was a Real Weirdo''Did you see what happened in the stock market this week? I spent more time gasping for breath than Jeffrey Epstein,' Maher said, referencing the stock market tumbling earlier this week.
Read more »
Bill Nye the Science Guy: ‘we need sweeping changes’Legendary scientist, Bill Nye the Science Guy joins The Beat to discuss July being the hottest month ever recorded on Earth. Nye says Trump’s ‘bluster’ when it comes to climate change is ‘very troubling.’ Nye criticizes Trump’s administration, saying America should be ‘the world leader’ in addressing climate change, but instead is ‘taking extraordinary steps in the wrong direction.’
Read more »
Bill Gates learned how to make BBQ chicken from Washington state's Teacher of the YearThe billionaire recently met with Robert Hand, Washington's Teacher of the year who taught him how to make BBQ chicken as well as an important lesson about how we prepare our students for the future.
Read more »
Kendrick Perkins Shows Love For 1990s, Bill Clinton In Nostalgic TweetThe 1990s were dope, as most of us can attest. However, there might be no bigger fan of that glorious decade than former Boston Celtics big man Kendrick Perkins. Perkins on Tuesday dropped a highly…
Read more »
10 of the most bizarre details people have reported finding in Jeffrey Epstein's NYC mansion, from a painting of Bill Clinton in a dress to prosthetic breasts mounted on a bathroom wallBusiness Insider has compiled a list of the strangest ways registered sex offender Jeffrey Epstein reportedly decorated his NYC mansion.
Read more »
School district frames dollar bill to comply with law to display 'In God We Trust' on campusState Rep. Brandon Reed, who sponsored the bill, blasted the district's decision, saying they were playing 'political games' and using 'silly loopholes' to deprive students from creating artwork
Read more »