This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Buffett's Berkshire Hathaway Holds Economic Recovery Value

Berkshire's annual meeting will certainly celebrate the strong growth of many of the firm's operating units and its stock market portfolio.

Still, there are questions over who might take over as CEO after Buffett, who at 82 years old, continues to show little sign of slowing, as evidenced by a joint deal with 3G Capital to buy Heinz, the iconic ketchup maker.

Technical financial matters such as share buybacks and the prospect of a dividend are also likely to be topics raised by investors, in the firm's Saturday afternoon question and answer session.

If there is an elephant in the room in Omaha's CenturyLink Center, where the shareholder meeting will occur, it is roughly $12 billion in free cash flow and $35 billion in pro-forma cash Buffett and Berkshire will wield for future acquisitions.


Buffett has called Berkshire's cash an elephant gun to bag large acquisitions and said in his 2012 shareholder letter he remains on the prowl for big deals.

At last year's shareholder meeting, Buffett said the firm had nearly signed onto a $20-billion acquisition, but dropped out over a disagreement on price. CNBC's David Faber reported earlier in 2013 that Berkshire was an unnamed bidder for NYSE Euronext (NYX) in the stock exchange's proxy filing detailing its merger with IntercontinentalExchange (ICE).

If Buffett does shoot his so-called elephant guns for acquisitions, expect another high quality company such as Heinz or BNSF Railway to be within Berkshire's gaze.

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price," Buffett said in his 1989 shareholder letter.

For some topics on investors' minds heading into Berkshire's annual meeting, see why Buffett's buyback math is a key to bank earnings.

Also see why Berkshire will be taking a stake in Goldman Sachs later in 2013.

-- Written by Antoine Gara in New York.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs