BRK.A
💰 Berkshire Hathaway holds $334 billion in cash, not because Buffett wants to, but because he is unwilling to overpay for overvalued companies in the market.
📈 Buffett maintains a strong preference for stocks, ensuring that a substantial majority of Berkshire’s funds are deployed in equities, primarily U.S.-based, but with significant international operations.
⏳ Buffett emphasizes patience and discipline in investing, preferring to accumulate cash rather than make a bad investment, ready to seize unique opportunities when they arise.
@adriarivero:
“Currently, many analysts consider that Berkshire Hathaway has a very high cash position, and it is true. The company has $334,000 million in cash, which is not a small amount. But this is not because Buffett wants to, but because he is not willing to overpay for overvalued companies in the market. It is true that the market is not super cheap right now. The S&P 500 trades at a substantial premium compared to its average of 22 times the P/E ratio, and the top 10 companies trade at 27 times. The vast majority of his money remains in stocks. That preference will not change. Berkshire shareholders can be sure that we will always deploy a substantial majority of their money in stocks, mostly American, although many of these companies will have significant international operations. Berkshire will never prefer holding cash or cash-equivalent assets to owning good businesses, whether controlled or only partially owned. Buffett understands that investing is a game of patience and discipline. He is not swayed by emotion or market pressure. He prefers to accumulate cash before making a bad investment. When the time comes, when it arrives, Berkshire will have sufficient liquidity to take advantage of unique opportunities, just as it did in 2008 with the crisis. Of course, let’s also put things in perspective. Here we see the flow or cash that Berkshire has in absolute terms, but here we can see the cash as a percentage of total assets, and thus we have a better picture of the proportion. We see that Buffett had previously held a similar cash position in 2005-2006, before the 2008 financial crisis, and now it is around that level of about 25% of total assets.”
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