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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free 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.
-
S&P 500 Slips Ahead of Fed Week: Stock Market Today
All eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market Today
Wednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
-
S&P 500 Hits New High After Oracle Earnings: Stock Market Today
Another down day for Apple held the Dow Jones Industrial Average back, though.
-
Stocks Grind Up to New All-Time Highs: Stock Market Today
UnitedHealth stock led the Dow Jones Industrial Average amid increasing signs the labor market has not been well for months.
-
Markets Prepare for August Inflation Data: Stock Market Today
Apple CEO Tim Cook is still important, but price action this week is as much about incoming inflation data ahead of next week's Fed meeting.
-
Stocks Slip as Job Growth Stalls: Stock Market Today
The August jobs report came in much weaker than expected, while the unemployment rate ticked higher.
-
S&P 500 Hits New High on Jobs Friday Eve: Stock Market Today
The S&P 500 hit a new all-time closing high and most of the stocks in the Dow Jones Industrial Average were up the day before a critical jobs report.
-
Big Tech Names Rise Above Broad Weakness: Stock Market Today
Some familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.