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Berkshire Hathaway Cash Flow from Investing

: $-75,483 Mil (TTM As of Sep. 2020)
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Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).

For the three months ended in Sep. 2020, Berkshire Hathaway spent $3,329 Mil on purchasing property, plant, equipment. It gained $0 Mil from selling property, plant, and equipment. It spent $29 Mil on purchasing business. It gained $0 Mil from selling business. It spent $58,334 Mil on purchasing investments. It gained $50,706 Mil from selling investments. It paid $0Mil for net Intangibles purchase and sale. And it paid $869 Mil for other investing activities. In all, Berkshire Hathaway spent $11,855 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Sep. 2020.


Berkshire Hathaway Cash Flow from Investing Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Berkshire Hathaway Annual Data
Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Cash Flow from Investing Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -28,001.00 -84,225.00 -41,009.00 -32,849.00 -5,621.00

Berkshire Hathaway Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
Cash Flow from Investing Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18,364.00 -21,077.00 -27,804.00 -14,747.00 -11,855.00

Berkshire Hathaway Cash Flow from Investing Calculation

Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).

If a company spends cash on property, plant and equipment (PPE), this will reduce their cash position. This is called Capital Expenditures (CPEX).

Likewise, if a company buys another company for cash, this will reduce their cash position.

Berkshire Hathaway's Cash Flow from Investing for the fiscal year that ended in Dec. 2019 is calculated as:

Berkshire Hathaway's Cash Flow from Investing for the quarter that ended in Sep. 2020 is calculated as:


Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2020 was -21077 (Dec. 2019 ) + -27804 (Mar. 2020 ) + -14747 (Jun. 2020 ) + -11855 (Sep. 2020 ) = $-75,483 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Berkshire Hathaway  (NYSE:BRK.A) Cash Flow from Investing Explanation

Cash flow from investing contains nine items:

1. Purchase Of Property, Plant, Equipment:
Purchase of PPE indicates the amount used to purchase property, plant, and equipment.

Berkshire Hathaway's purchase of property, plant, equipment for the three months ended in Sep. 2020 was $-3,329 Mil. It means Berkshire Hathaway spent $3,329 Mil on purchasing property, plant, equipment.

In the capital spending for property, plant and equipment (PPE), some part of spending may be from the expansion of business. The business needs more property, plant and equipment (PPE) as it grows. Another part may be from replacement of the property, plant and equipment (PPE) of existing business. For some companies, the cash spent on replacing of the property, plant and equipment (PPE) of the existing business will be close to the depreciation of property, plant and equipment (PPE) reported in the income statement.

In Warren Buffett's definition of Owner's Earnings, he deducts the estimate of the cost of replacing the property, plant and equipment (PPE) of the existing business from cash flow from operations. The cash spent on the new property, plant, and equipment is not deducted. The reason is because these are not costs of the existing business. In his 1986 letter to shareholders, Warren Buffett wrote this about owner earnings:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume....Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

2. Sale Of Property, Plant, Equipment:
Sale of PPE indicates the amount gained from selling property, plant, and equipment.

Berkshire Hathaway's sale of property, plant, equipment for the three months ended in Sep. 2020 was $0 Mil. It means Berkshire Hathaway gained $0 Mil from selling property, plant, and equipment.

3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.

Berkshire Hathaway's purchase of business for the three months ended in Sep. 2020 was $-29 Mil. It means Berkshire Hathaway spent $29 Mil on purchasing business.

4. Sale Of Business:
Sale of business indicates the amount gained from selling business.

Berkshire Hathaway's sale of business for the three months ended in Sep. 2020 was $0 Mil. It means Berkshire Hathaway gained $0 Mil from selling business.

5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.

Berkshire Hathaway's purchase of investment for the three months ended in Sep. 2020 was $-58,334 Mil. It means Berkshire Hathaway spent {stock_data.stock.currency_symbol}}58,334 Mil on purchasing investments.

6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.

Berkshire Hathaway's sale of investment for the three months ended in Sep. 2020 was $50,706 Mil. It means Berkshire Hathaway gained $50,706 Mil from selling investments.

7. Net Intangibles Purchase And Sale:
Net Intangibles purchase and sale means the net cash inflow received by a company that comes from the purchase and sale of intangibles. It equals the cash received from sale of intangibles minus the cash spent on purchasing intangibles.

Berkshire Hathaway's net Intangibles purchase and sale for the three months ended in Sep. 2020 was $0 Mil. It means Berkshire Hathaway paid $0 Mil for net Intangibles purchase and sale.

8. Cash From Discontinued Investing Activities:
Cash from discontinued investing activities means the cash received by a company that comes from the discontinued investing activities.

Berkshire Hathaway's cash from discontinued investing activities for the three months ended in Sep. 2020 was 0 Mil. It means Berkshire Hathaway paid $0 Mil for discontinued investing activities.

9. Cash From Other Investing Activities:
Cash from other investing activities means the cash received by a company that comes from other investing activities.

Berkshire Hathaway's cash from other investing activities for the three months ended in Sep. 2020 was $-869 Mil. It means Berkshire Hathaway paid $869 Mil for other investing activities.


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