Warren Buffett on valuations today… “I don’t think anyone at this table has any idea of how to use it [$189B in cash] effectively, and therefore we don’t use it. We only swing at pitches we like… today things aren’t attractive. We’re not using it at 5.4%, but I... wouldn’t use it at 1% either. But don’t tell the Federal Reserve that. I don’t mind at all, given current conditions, building our cash position. When I look at the equity markets and the composition of what’s going on in the world, we find cash quite attractive.”show more

He is basically telling you that everything is overpriced and it’s better to be patient and wait.

old man knows a thing or two

When he says “we’re not using it at 5.4%” I assume he means it’s generating 5.4% and doesn’t want to gamble on higher returns?

Better to hold it for now than burn it as Apple will do with stock buybacks as their IPhone market will continue to drop in China. Surely Apple could find a better use for that money.

Let me guess, the guy who managed to raise his cash hoard to 189B is an idiot🤣 He’s essentially saying 5.4% or 1% is no deal without a correction.. AKA he sees a bubble, and a potential “good deal” is worth the powerful bid that cash grants.

I love the modesty of the genius in Warren Buffett. He’s just a beautiful man

As a relatively younger investor, this both excites and terrifies me.

Berkshire Hathaway hasn’t beaten the market in a long time. Buffett avoided tech investing for many years and Nasdaq-100 has trounced BRK-B (10-yr compounded return of 404% vs 215%).

Inflation is 25% over the last 4 years. Doing the math earning 5% years minus the inflation cost he would have 230 billion usd but 180 billion purchasing power wise.

Median cash holdings have been $138bn through each of the last 5 years. There was no investment opportunities in any of those years for this cash? Okey dokey.