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Berkshire Hathaway Inc. has reported that they have $44.7 billion in cash (including cash equivalents) on their balance sheet. In addition, the company has $

"Berkshire Hathaway Inc. has reported that they have $44.7 billion in cash (including cash equivalents) on their balance sheet. In addition, the company has $90.3 billion in US Treasury Bills, and $20.4 billion in short-term investments in fixed maturity securities"

What does this statement mean to you?

  1. Why does Berkshire have so much cash? How did they amass this amount?
  2. Is having all this liquidity a good thing for its stakeholders?
  3. What is the right amount of cash which Berkshire should retain on their balance sheet?

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