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Warren Buffett has enough cash to buy Tesla, Mcdonalds and Starbucks even after coronavirus pandemic!

Warren Buffett’s Berkshire Hathaway can afford to buy almost any of America’s public companies after coronavirus fears decimated their market capitalizations in recent weeks.

The famed investor’s conglomerate boasted $125 billion in cash, cash equivalents, and short-term investments in US Treasuries at the end of December. Assuming that figure hasn’t changed, and looking purely at market caps while ignoring whether a purchase would be feasible, sensible, or even legal, Berkshire could buy one of more than 450 companies in the S&P 500, more than 80 in the Nasdaq 100, and 11 in the Dow 30 without needing a loan, as of the close of trading on March 27, Business Insider reported.

For example, Berkshire could afford McDonald’s ($125 billion) or PayPal ($118 billion) in the S&P 500. On the Dow, it could snap up Boeing ($102 billion), IBM ($100 billion), or Goldman Sachs ($57 billion) without blowing its budget.

According to Business Insider, In the Nasdaq 100, neither Tesla ($97 billion) nor Starbucks ($82 billion) would break the bank.Moreover, shareholders of a company on the auction block typically demand a premium to its current market cap to reflect its future earnings potential.

As a cautious investor, Buffett would undoubtedly snub many of these businesses. However, the raft of possible acquisitions in his price range highlights both the scale of the recent sell-off and the rich potential of Berkshire’s huge cash pile.

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