Why is Berkshire Hathaway sitting on $137 Billion in cash?


Think finance and Mr. Buffet is one of the first names that comes to mind. Warren Buffet has had humble beginnings, his life changed drastically with an impulsive takeover of the Berkshire Hathaway Inc.

If you aren’t aware of the history behind Buffet’s reasoning behind acquiring Berkshire, it is worth reading and marvelling over.

Over the course of next few decades, Warren Buffet went on to take the company to new highs. In 2019, the company reported having more than 817 Billion USD in assets.

The most surprising part for avid investors though, has been the fact that Berkshire Hathaway has north of $137 Billion in cash and cash reserves!

That is a lot of cash to keep in had, especially when the markets seem to be going up. Most recently in May 2020, they exited almost all their holdings in the airline industry netting them about $6 Billion.

Does that mean Berkshire thinks the markets are overvalues and hyped at the moment? It is not very clear.

UPDATE: As we were about to publish this article, we got a notification about Berkshire’s largest deal in 4 years – the $10 Billion bet on Dominion Energy.


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Stella Dankworth

Writing about my journey, as I learn, travel and uncover the secrets of this beautiful planet.

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