Warren Buffet is accumulating loads of money… Is there something to worry about?
For the most known as the world-famous investor or the Oracle of Omaha (a nickname he earned through his successful career), Warren Buffet holds large sum of his portfolio in cash. He isn't usually one for hoarding cash. So, what's he planning to do with Berkshire Hathaway's record $325 billion in cash?
How to imagine that amount of money? With that amount you could buy for example 476 individual companies in the S&P 500. He could buy the rest of T-Mobile US that BRKBdoesn't already own and there would still be money left. In addition to holding the most cash in history, Berkshire Hathaway is also selling some of its Apple (389 million) shares.
Warren Buffet himself spoke at a press conference about an overpriced market, where, according to him, it is difficult to find meaningful investments. All of this leads him to hoard cash because he does not know where to put it. According to his investment strategy, one must invest in companies that are valued below their real value, and in his opinion, we cannot find such on the market now.
One we can know for sure. If the most successful investor holds cash and doesn't want to invest, something is off. Should we be scared of what is going to happen? Some crisis or something? No. We just need to be prepared for everything. Because in the biggest crisis, there are always the biggest opportunities.
Sources:
https://www.investopedia.com/terms/o/oracleofomaha.asp
https://en.wikipedia.org/wiki/List_of_assets_owned_by_Berkshire_Hathaway
-Adam Štoidl