Berkshire more inclined to repurchase stock than pay dividends: Buffett
Warren Buffett
NEW YORK (Reuters) - Warren Buffett  chairman and CEO of Berkshire Hathaway Inc (BRKa.N)  said his conglomerate  which is sitting on $116 billion of cash  is âmore inclinedâ to repurchase stock than pay dividends as a means to use excess cash.
Speaking on CNBC television on Monday   Buffett  said the corporate income tax rate cut signed into law by U.S. President Donald Trump in December is a âhuge tailwindâ for U.S. companies and that it is âreally good for Berkshire.â
In his annual letter to Berkshire shareholders on Saturday   Buffett  lamented his inability to find big companies to buy and said his goal is to make âone or more huge acquisitionsâ of non-insurance businesses to bolster results at Berkshire.
 Buffett  said finding things to buy at a âsensible purchase priceâ has become a challenge and is a major reason Berkshire is awash with $116 billion of low-yielding cash and government bonds  whose average maturity was 88 days as of the end of 2017.
âI am fairly confident we will find ways to deployâ Berkshireâs excess cash   Buffett  said on CNBC. âThe best chance to deploy money is when things are going down.â
 Buffett  says  he  has confidence in Wells Fargo & Co (WFC.N) Chief Executive Tim Sloan  as  he  tried to move the third-largest U.S. bank past scandals over how it treated customers including by creating unauthorized accounts.
 Buffett  likened the situation to when  he  was installed in 1991 as chairman of Salomon Brothers Inc after a former chief executive failed to tell regulators that a trader was submitting fake bids at Treasury auctions.
âDigging your way out of it takes time â  Buffett  said. â He âs got a lot to clean up.â
 Buffett  raised red flags about ordinary investors using borrowed cash to buy stocks  or buying âon margin.â
 Buffett  said it was âcrazyâ to borrow money to buy stocks and that âit is insane to risk something you have and needâ for the sake of leveraging up on stocks.  Buffett  said investors might get a âeuphoric surgeâ if they double their money in stocks  but would not be âhappier.â
NEW YORK (Reuters) -  [TGT]   chairman and CEO of Berkshire Hathaway Inc (BRKa.N)  said his conglomerate  which is sitting on $116 billion of cash  is âmore inclinedâ to repurchase stock than pay dividends as a means to use excess cash.
Speaking on CNBC television on Monday   Buffett  said the corporate income tax rate cut signed into law by U.S. President Donald Trump in December is a âhuge tailwindâ for U.S. companies and that it is âreally good for Berkshire.â
In his annual letter to Berkshire shareholders on Saturday   Buffett  lamented his inability to find big companies to buy and said his goal is to make âone or more huge acquisitionsâ of non-insurance businesses to bolster results at Berkshire.
 Buffett  said finding things to buy at a âsensible purchase priceâ has become a challenge and is a major reason Berkshire is awash with $116 billion of low-yielding cash and government bonds  whose average maturity was 88 days as of the end of 2017.
âI am fairly confident we will find ways to deployâ Berkshireâs excess cash   Buffett  said on CNBC. âThe best chance to deploy money is when things are going down.â
 Buffett  says  he  has confidence in Wells Fargo & Co (WFC.N) Chief Executive Tim Sloan  as  he  tried to move the third-largest U.S. bank past scandals over how it treated customers including by creating unauthorized accounts.
 Buffett  likened the situation to when  he  was installed in 1991 as chairman of Salomon Brothers Inc after a former chief executive failed to tell regulators that a trader was submitting fake bids at Treasury auctions.
âDigging your way out of it takes time â  Buffett  said. â He âs got a lot to clean up.â
 Buffett  raised red flags about ordinary investors using borrowed cash to buy stocks  or buying âon margin.â
 Buffett  said it was âcrazyâ to borrow money to buy stocks and that âit is insane to risk something you have and needâ for the sake of leveraging up on stocks.  Buffett  said investors might get a âeuphoric surgeâ if they double their money in stocks  but would not be âhappier.â