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Warren Buffett said he does not build a huge cash pile for his proposed successor to spend.
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The billionaire quoted that he would not do something so “noble” just to make Greg Abel “look good.”
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The Berkshire Hathaway reserve doubled to over $ 300 billion in 2024 and hit a highest ever last quarter.
One of the biggest questions hanging over Berkshire Hathaway is why Warren Buffett built such a large cash fund.
The famous investor and Berkshire CEO rejected the idea that he was devoting a huge amount of cash, Treasury bills, and other liquid assets for his proposed successor, Greg Abelto invest once it is gone.
“I wouldn't do anything almost as noble as hold back investing myself Just as Greg might look good“He said at the Berkshire annual shareholder meeting on Saturday, causing a wave of laughter to roll through the crowd.
Berkshire broadly doubles his cash pile north of $ 300 billion last year, and rose to a new record of nearly $ 348 billion in the first quarter of this year, the company Earnings revealed on Saturday.
A major surge factor was the sale of Berkshire from two -thirds of its Apple site last year, which had been a largest portfolio payment for years. Buffett still Tim Cook, Apple CEOwho sat a short distance from him in the crowd watching at you a health center, where Business Insider was watching the cause live.
Buffett said he would happy spending $ 20 billion, even $ 100 billion, on the right opportunity if it was a business or another asset that offered good value and felt comfortable owning the long -term.
High valuations for public stocks, private businesses, and even Berkshire stock have blocked the value investor in recent years.
The billionaire said he would prefer enough deals available that Berkshire would only have $ 50 billion backup. But he said it would be the “smallest thing in the world” to invest $ 50 billion a year constantly only to shrink the cash pile of Berkshire, as quality purchases only appear occasionally.
He also stressed that he had already been too active in the market over the years.
“Charlie always thought I had done too many things,” said Buffett, referring to his late business partner, Charlie Munger.
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