Billionaire Warren Buffett says his company has benefited from some “extraordinary luck” in finding acquisitions like BNSF railroad over the decades, but he hasn’t had much of that in recent years as Berkshire Hathaway’s cash pile has grown to nearly $147 billion.
Buffett sought to reassure shareholders with his annual letter Saturday that he retains a strong appetite for acquisitions and stock investments, but he hasn’t found many of either that interest him at today’s inflated prices.
He blamed the continued low interest rates for helping drive up the price of stocks and whole companies alike, and in the past he has said that increasing competition from private equity buyers has also made it hard to find good deals.
“From time to time, such possibilities are both numerous and blatantly attractive. Today, though, we find little that excites us,” Buffett wrote about the prospects for finding good stock investments.