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The dream of every portfolio manager

Oct 04, 2023

Berkshire Hathaway, the holding company of Warren Buffett, has accumulated a record war chest approaching 150 bn USD of cash & equivalents. This cash pile can be put to work when investment opportunities arise in case of a market disruption. Buffett has shown in the past that buying good assets at distressed prices when other market participants are forced to liquidate their positions is a great source of returns. On top of that, Berkshire is handsomely paid on its liquidity: $120bn of the cash is parked in short-term Treasury bills and earned Berkshire $1.4bn of interest income during the second quarter 2023 alone. Such a position is the dream of every portfolio manager.

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