FILE PHOTO: Warren Buffett, CEO of Berkshire Hathaway Inc, pauses while playing bridge as part of the company annual meeting weekend in Omaha, Nebraska U.S. May 6, 2018.
REUTERS/Rick Wilking/(Reuters) - Warren Buffett on Saturday compared the buying frenzy by special purpose acquisition companies, or SPACs, to gambling with other people’s money and said their activity has made it tough for his company, Berkshire Hathaway Inc, to compete on deals.
Berkshire Hathaway has $70 billion to $80 billion it would “love to put to work,” but has not been able to under the current conditions, Chairman and Chief Executive Officer Buffett said.
The SPACs generally have to spend their money in two years, as I understand it.
There are companies that are interested in being acquired by Berkshire, but it would be difficult for them to do so because a SPAC bidder would counter with a higher offer, Buffett said.
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