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How Likely Is It That Warren Buffett's Successor, Greg Abel, Will Use a Portion of Berkshire Hathaway's $359 Billion Cash Pile to Buy This Large-Cap Value Stock in September?

How Likely Is It That Warren Buffett's Successor, Greg Abel, Will Use a Portion of Berkshire Hathaway's $359 Billion Cash Pile to Buy This Large-Cap Value Stock in September?

Berkshire Hathaway, under the leadership of successor Greg Abel, currently possesses a $359 billion cash pile that could potentially be used to invest in large-cap value stocks. One such stock mentioned in the article is Walt Disney (NYSE: DIS). The company currently offers an attractive valuation with a forward price-to-earnings (P/E) ratio of 14.3, compared to the S&P 500's 21.

Disney also boasts a strong moat due to its valuable intellectual property, including characters, storylines, franchises, and studios. The company's adjusted earnings per share grew by 19% in fiscal 2025 and is expected to double-digit growth in fiscal 2026. Disney's streaming platforms, Disney+ and Hulu, have a strong market position with over 190 million subscribers as of September last year, generating profits despite fierce competition.

However, there are concerns regarding the legacy operations, as the traditional linear-TV market is facing challenges due to the streaming trend and subscriber losses. While there is no indication that Berkshire Hathaway will purchase Disney shares in September, the stock's favorable valuation, moat, and growth potential may pique Abel's interest.

Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at finance.yahoo.com →

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