Berkshire Hathaway Inc.’s cash holdings hit a record $157.2 billion, helped by both higher interest rates and a lack of meaningful deals in which billionaire investor Warren Buffett could put his money to work.
Indeed, if as an investor you believe in an imminent market collapse, it makes sense to accumulate reserves so that when the moment comes, you could obtain maximum amount of assets while the prices still low.
And while you wait, why not lend some money to the US government, and enjoy those high interest rates?
The Omaha, Nebraska-based company said Saturday the amount of cash Berkshire primarily holds in short-term Treasuries reached its highest level since the Q3 of 2021.
The conglomerate also reported an operating profit of $10.76 billion, up from the previous year, as it benefited from the impact of higher interest rates on cash holdings.