Buffett said this "purcasing frenzy" was being fuelled by "can-do" chief executives, egged on by analysts and board members. And Buffett is unwilling to load up on debt to finance deals at current prices.
Tax reforms of President Trump were claimed to have given a USD29 billion increase in profit for billionaire Warren Buffet's conglomerate. The stock quickly returned to the level it has traded at since Buffett's company disclosed the Teva investment February 15.
Warren Buffett is worth upwards of $86 billion, runs a $500-billion financial services company, is an avowed philanthropist and was a vocal supporter of Hillary Clinton in the 2016 U.S. presidential campaign.
"If the historical performance of the target falls short of validating its acquisition, large "synergies" will be forecast".
"So $14 billion, roughly, was a reduction in the amount of tax that when we sell those securities we will pay".
Beyond larger and fiercer competition from other BKR-like conglomerates, Buffett stressed on the fact that having a large amount of cash available - BKR is now sitting on United States dollars 116 billion of cash and bonds - doesn't mean you have to spend it.
"I see how strong that ecosystem is, to an extraordinary degree", Buffett told CNBC.
"I am fairly confident we will find ways to deploy" excess cash, Buffett said.
"We made only one investment decision in 10 years (selling a bond investment and buying Berkshire stock that owned a diversified group of solid businesses ) ..."
"You have to be pretty careful if you're saying that you're not going to fly on this airline because of that or we're not going to use this railroad because of that", said Buffett, who says Berkshire doesn't own any gun investments to his knowledge. Sometimes the payoffs to us will be modest; occasionally the cash register will ring loudly.
"It is a bad mistake for investors with long-term horizons - among them pension funds, college endowments and savings-minded individuals - to measure "risk" in their portfolio's ratio of bonds to stocks", Mr Buffett warns.
The lack of a comfortable purchase price "proved a barrier to virtually all deals we reviewed in 2017, as prices for decent, but far from spectacular businesses hit an all-time high".
"In America, equity investors have the wind at their back", he said.
"Stocks surge and swoon, seemingly untethered to any year-to-year build-up in their underlying value", he pointed out.
Still you could have used that argument to bet against Mr Buffett and have gone for hedge funds in 2007 and yet even then he would have won posthumously, as presumably he intended.
He estimated the chances of a "mega-catastrophe" this year - one causing losses of at least US$400 billion - at 2 percent. He gave four examples since 1973 where Berkshire's share price had fallen by 59.1%, 37.1%, 48.9% and 50.7%.