BRK.A
💰 Berkshire Hathaway holds a substantial $334 billion in cash.
🤔 Buffett is waiting for the perfect opportunity and is unwilling to overpay for overvalued companies.
🛡️ Prefers accumulating cash over making poor investments.
⏳ Berkshire Hathaway will have sufficient liquidity to seize unique opportunities when the time comes.
@adriarivero:
“Many analysts consider that Berkshire Hathaway has a very high cash position. The company has 334 billion in cash, which is not little, but this is not because Buffett wants to, but because he is not willing to pay more for overvalued companies in the market. The market is not super cheap right now. The S&P 500 trades at a substantial premium with respect to its average of 22 times with respect to the PER, and the first 10 companies trade at 27 times. The great majority of his money continues to be in shares. That preference will not change. The shareholders of Berkshire can be sure that we will always deploy a substantial majority of their money in shares, mostly American, although many of these companies will have international operations of importance. Bay will never prefer the possession of cash or assets equivalent in cash to the property of good companies, whether controlled or only partially owned. Buffett understands that investing is a game of patience and discipline. He does not get carried away by the emotion or the pressure that may be in the market. He prefers to accumulate cash before making a bad investment. When the moment arrives, Berkshire will have sufficient liquidity to take advantage of unique opportunities, just as he got his boots on in 2008 with the crisis.”
Watch the exact part of the video where Adrià Rivero talks about Berkshire Hathaway’s cash position here:
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