Paul Morigi/Getty Images Warren Buffett speaks onstage during Fortune's Most Powerful Women Summit - Day 2 at the Mandarin Oriental Hotel on October 13, 2015 in Washington, DC.
- Warren Buffett and Charlie Munger could retire soon, but that's not a concern to Buffett himself.
- Buffett thinks Berkshire Hathaway has the assets to grow, and the culture to use those assets effectively.
- Watch Berkshire Hathaway stock trade in real time here.
Berkshire Hathaway's legendary duo Warren Buffett and Charlie Munger could retire soon.
But amid some concerns that the conglomerate will take a hit if that happens, Buffett isn't at all worried, according to a Morgan Stanley note on Berkshire Hathaway's annual letter to shareholders.
"Mr. Buffett is not worried about potential reduction in deal flow," analyst Kai Pan wrote. That's for two reasons: the company's assets and its culture.
"He thinks Berkshire's attractiveness lies in its strong balance sheet and unique culture which will sustain beyond him," Pan said.
Berkshire Hathaway saw its cash balance reach $108 billion in the first-quarter. While Pan points out that high equity multiples could be a headwind to Berkshire's deal volume in the near future, he bets it would still focus on acquisitions. "Mr. Buffett does not see current valuation compelling for large share buybacks," he wrote, adding that "Berkshire could deploy cash for more equity investments."
On the acquisitions front, Pan thinks Berkshire will be "patient on capital deployment," but will continue hunting for valuable acquisitions. Currently, "there are fewer acquisition opportunities," Pan wrote.
The note pointed out that Buffett is a big fan of Apple stock, which he upped his company's stake in Friday, sending the stock higher.
Berkshire Hathaway is off .09% on the year.
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