Warren Buffett Finally Opens Up Berkshire's Wallet
Warren Buffett puts Berkshire Hathaway's $137 billion cash pile to use, buying some of Dominion Energy's natural gas assets for $9.7 billion.


Warren Buffett is back to rummaging through the bargain bin, striking a multi-billion deal for some energy assets.
The Oracle of Omaha has taken some heat over the past few months for only unloading stocks and not spending any of Berkshire Hathaway's (BRK.B, $178.83) record $137 billion cash pile. But on Sunday, July 5, Buffett quieted some of the criticism by announcing it would snap up Dominion Energy's (D, $82.69) natural gas transmission and storage assets in a deal valued at $9.7 billion, including the assumption of debt.
Buffett's timidity has been somewhat troubling. After all, the S&P 500 fell more than 30% from its bull-market peak at one point, and yet Buffett's only move was to raise cash.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Where was the greed when others were fearful?
"We have not done anything because we don't see anything that attractive to do," Buffett said in May, when questioned about Berkshire's lack of appetite.
But Dominion finally caught his fancy.
A Look at the Dominion Deal
Berkshire's energy division will pay $4 billion in cash to Dominion and also assume $5.7 billion in debt, giving the deal an enterprise value of $9.7 billion. In return, Berkshire gets more than 7,700 miles of natural gas transmission lines and roughly 900 billion cubic feet worth of gas storage.
The acquisition of Dominion's assets represents Berkshire's biggest deal since it bought Precision Castparts for $37.2 billion in 2016.
And if you're wondering, the deal does indeed look like another classic Buffett move.
The purchase comes after a June that saw natural gas futures hit lows not seen in a quarter-century. The announcement also came at the same time that Dominion and Duke Energy (DUK) said they scrapped construction on the Atlantic Coast Pipeline, citing years of delay and legal uncertainties.
The transaction also bolsters Berkshire's presence in interstate nat-gas transmission, from an 8% share currently to an estimated 18%.
Buffett has called Berkshire's energy businesses and its railroad the company's "lead dogs" outside its core insurance holdings. The Dominion assets will add millions in income to the energy division while accounting for just 7% of Berkshire's war chest.
The purchase also might be taken as a signal that we've seen the bottom in the natural gas market.
The bottom line: This looks like a good deal for Berkshire shareholders. It's also a vote of confidence in the economy from one of the greatest long-term investors of all time.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Dan Burrows is Kiplinger's senior investing writer, having joined the publication full time in 2016.
A long-time financial journalist, Dan is a veteran of MarketWatch, CBS MoneyWatch, SmartMoney, InvestorPlace, DailyFinance and other tier 1 national publications. He has written for The Wall Street Journal, Bloomberg and Consumer Reports and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among many other outlets. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange.
Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.
In his current role at Kiplinger, Dan writes about markets and macroeconomics.
Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.
Disclosure: Dan does not trade individual stocks or securities. He is eternally long the U.S equity market, primarily through tax-advantaged accounts.
-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement Rule
The '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
Stock Market Today: Stocks Swing as Trump Scraps Canada Trade Talks
Despite a mid-afternoon slip, the S&P 500 and Nasdaq ended the day at new record highs.
-
Stock Market Today: S&P 500, Nasdaq Near New Highs
The S&P 500 hasn't hit a new high since February. It's been since December for the Nasdaq.
-
7 Essential Investing Rules We All Should Know
The best time to start investing is right now. That's just one vital rule investors should be familiar with. Here are six more.
-
Stock Market Today: Stocks Struggle to Sustain Gains
Mixed messages from multiple sources continue to make for a messy market for investors, traders and speculators.
-
Stock Market Today: Stocks Soar on Israel-Iran Ceasefire
It was a rocky start to the truce, but a temporary halt to fighting between Israel and Iran appears to be holding for now.
-
The Riskiest S&P 500 Stocks Right Now
Buyer beware: These are five of the riskiest stocks in the S&P 500 at the moment, based on one measure of volatility.
-
Stock Market Today: Stocks Rise on a Little More Uncertainty
The best response to a major geopolitical event is often no response at all, especially if you're looking at the big picture.
-
Stock Market Today: Stocks Chop as Chipmakers Decline
Several semiconductor stocks fell Friday on reports that the White House may consider revising license waivers for global chipmakers.