Through Berkshire Hathaway, billionaire investor Warren Buffettâ€™s acquisitions have included Burlington Northern Santa Fe for $26 billion in 2009 and Lubrzol Corp. for $9 billion just this month.
Now Buffett is looking for more big companies to buy with $38 billion in Berkshire Hathaway mad money, according to a Reuters story this week. Buffet serves as chairman and CEO of Berkshire Hathaway, a conglomerate holding company that manages numerous subsidiary companies.
â€œIn Berkshireâ€™s annual report, Buffett said he is on the lookout for possible acquisitions â€” making references to going big-game hunting with an elephant gun,â€ the story said.
By the end off the year, that Berkshire Hathaway cash cache will grow to more than $50 billion, Reuters said.
So what does this have to do with Cliffs Natural Resources?
Cliffs made a list of companies, compiled by Reuters, that met Buffettâ€™s usual criteria for acquisition:
â€”Itâ€™s a growth industry.
â€”Itâ€™s an industry leader with a strong balance sheet.
â€”It has a history of profitability.
â€”It has little debt.
â€”Itâ€™s available on the cheap.
Other companies that made the list include Rolls-Royce Group, ITW, Eaton and AkzoNobel. One informed source quoted in the story believes a Buffett acquisition bigger than Burlington Northern is coming this year.