Warren Buffett’s Berkshire Hathaway is climbing after announcing a $111 billion cash pile that's fueling speculation over its next big investment (BRKB)

Rick Wilking/Reuters

Berkshire’s profits rose 67% for the second quarter, which ended in June, fueled by a healthy economy that helped its insurance units, railroads, and automotive-financing arms.

The Omaha, Nebraska-based company also said it's sitting on a $111.1 billion nest egg of cash and cash equivalents, giving speculators ample fodder to theorize over Buffett’s next investment. Berkshire in July loosened its policy on share buybacks, which it says will be repurchased when their value is "below Berkshire’s intrinsic value," Chairman Charlie Munger said.

Stock buybacks are more likely in the near term, one analyst said Monday, as equity valuations remain too stretched for a conservative investor like Buffett to make a move. The CEO said in his most recent shareholder letter that he was having difficulty finding good acquisitions at sensible prices.

By Graham Rapier.

Full story at Yahoo News.