OMAHA, NEB.: Billionaire Warren Buffett says American businesses are getting a significant boost from the tax overhaul, but health care costs remain a drag, so he hopes a new initiative his company started with Amazon and JP­Morgan Chase will deliver significant savings.

Buffett appeared on CNBC on Monday after releasing his annual letter to Berkshire Hathaway shareholders over the weekend. Buffett’s Omaha, Neb.-based conglomerate reported a $29 billion paper gain on far-reaching changes to the U.S. tax code, and the conglomerate will benefit from a lower tax rate going forward.

“It’s a huge tail wind,” Buffett said.

The tax gain Berkshire reported was mostly related to adjustments in the paper value of its deferred taxes and unrealized capital gains on stocks. It drove most of the increase in Berkshire’s $44.9 billion profit last year, up from $24.1 billion in 2016.

But Buffett says he’s had a hard time finding acquisitions at reasonable prices, so he’s sitting on $116 billion cash and short-term bonds.

Buffett said he expects he’ll eventually find a good use for a big chunk of that cash, but he may have to wait for a downturn in the economy.

Last month, Berkshire announced its new health care initiative with Amazon and JP­Morgan. Buffett didn’t discuss many details of the plan Monday.

But Buffett said the goal is much bigger than simply shaving 3 percent off health costs through negotiating power.

“We’re looking for something much bigger than that,” Buffett said. “Hopefully we can find a way where perhaps better care could be delivered even at a somewhat lesser cost.”

Buffett said Berkshire and its partners have been inundated with offers from companies and individuals who want to help with the health cost project, but it’s too early to consider those because the group is still looking to hire an executive to lead the effort.