Berkshire's Buffett Still King of Cash
Bloomberg writes, "Berkshire Cash Hoard Scores Another Record as Earnings Gain," and The Wall Street Journal writes, "WSJ Buffett Rules Out ‘Eye-Popping’ Returns. But Investors Aren’t Listening." The former tells us, "Berkshire Hathaway Inc.'s cash pile hit yet another record as billionaire investor Warren Buffett confronted a dearth of big-ticket deals. Operating earnings also rose, buoyed by his collection of insurance businesses. The firm's hoard increased to $189 billion at the end of the first quarter, topping the record it set at year-end." Meanwhile, the Journal piece says, "They talk about safety and opportunity in Berkshire's mountainous cash pile, which sat at a record $167.6 billion, including cash equivalents, at the end of 2023.... Not only is Berkshire's huge stash of cash valuable for earning interest income, but the growth of its cash levels over six consecutive quarters through the end of 2023 reassures investors who are looking to park their money safely. Berkshire would be ready to pay any big losses that arise from its insurance business." It adds, "The cash also fortifies Berkshire's financial position in case of turmoil in markets or the economy. In the 2008 financial crisis and its aftermath, that strength meant Berkshire could make deals to help rescue blue-chip companies including Goldman Sachs and General Electric. And it leaves Buffett equipped to pounce should he find attractive companies to acquire." Analysts expect Berkshire Hathaway's cash war chest to break the $200 billion level at some point during the current quarter.
