What to do with all that Cash piling up at Berkshire, Mr Buffett?

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Buffett sells more Apple

The quartery numbers of Buffetts Berkshire Hathaway revealed that they sold even more of their Apple shares. They now reduced their original Apple position by two thirds in addition to selling also Bank of America stocks.

Cash piling up

In consequence of all of this selling activity Berkshire is now sitting on an unbelievably high cash pile of 325 Billion Dollars.

What to do with it?

325 Billion is A LOT of cash. Buffett could take over almost every company in the S&P for this amount, but Berkshire usually doesn't want to do that. They only ever buy a few percent of the shares and with 325 billion that's a lot of peanuts until it's even halfway reduced.

So for now they are just parking most of that stack in US T-Bills and get about 4% interest. That means payments of about 35 Million USD daily (!). So the cash generates even more cash.

Of course they now have money to invest in a coming recession or bigger market correction but in my opinion they won’t get around to hand out at least parts of it to their shareholders. Be it via buybacks of their own shares or via a dividend. Personally I would bet on both in the coming few years.

What do you think? What would you do with all that cash?

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