What is Warren Buffett Waiting for? Berkshire Hathaway's BILLION Cash Reserve | Berkshire 2024

[Transcript]

BECKY QUICK: This question’s from Johan Halen (PH), who writes, you’re sitting on $168 billion of cash, which he told us today is now more than $182 billion. His questions are, one, what is Buffett waiting for? And two, why not at least deploy some of it?

WARREN BUFFETT: Well, I think that’s pretty easy to answer. I don’t think anybody sitting at this table has any idea of how to use it effectively. And therefore, we don’t — we don’t use it. And we don’t use it now at 5.4%. But we wouldn’t use it if it was. If it was at 1%. Don’t tell the Federal Reserve that, but — (Laughs) — prefer it.

We only swing at pitches we like. And if anybody tried to swing at every pitch, or felt that because they hadn’t swung at a pitch for the last two pitches, they ought to swing at the third one or something like that. It’s just — There are times, and obviously.

But I would say this, I would not like to be running 10 billion now. 10 million I think we could. I think Charlie or I could earn high returns on, because I think there's just a few things that happen on a very, very small scale. But if we had 10 billion, I wouldn't basically see many more opportunities than we found now.

It’s true that something like Japan, we could have done, if the company had a 30 or 40 billion, and we’d make. We’d have had great returns on equity. But if I saw one of those now, I’d do it for Berkshire.

You know, it isn’t like I’ve got a hunger strike or something like that going on. It’s just that things aren’t attractive, and there’s certain ways that can change, and we’ll see whether they do.
 

Source: https://buffett.cnbc.com/2024-berkshire-hathaway-annual-meeting/

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