Berkshire Hathaway's $189bn cash reserves are historically typical, used for strategic acquisitions and financial flexibility.
Berkshire Hathaway's record $189bn cash reserves may concern some investors, but the company's large cash stockpile is historically typical, accounting for 17.7% of its total assets over the past 25 years. The conglomerate, led by CEO Warren Buffett, uses the cash to fund strategic acquisitions and maintain financial flexibility during market downturns. The company's cautious approach to investments may be justified by the Shiller P/E ratio, which suggests stretched stock valuations.
June 08, 2024
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