Warren Buffett: Waiting patiently for the right pitch

Cash is piling up faster than Warren Buffett can invest it


Warren Buffett has the kind of money problem most people would envy: a growing mountain of cash. Nearly $73 billion piled up at Berkshire Hathaway by mid-summer, more than Buffett's conglomerate has ever held before.

And the total continues growing every day Buffett doesn't make a major investment because Berkshire's 90-odd businesses generate roughly $1.5 billion in cash every month. ...

Buffett compares investing to baseball, except that investing is a game where the hitter can stand at the plate indefinitely waiting for the right pitch.

"The stock market is a no-called-strike game. You don't have to swing at everything," Buffett said in "The Warren Buffett Way." ''The problem when you're a money manager is that your fans keep yelling, 'Swing, you bum!' "
Comment: Investment tip. Have some cash for a down day! Image source (cropped) (Carl Yastrzemski)


  1. Market cap of 357 billion--about 21% of all assets are cash earning bupkus. If that's not an indictment of the Obama economy, I don't know what is.

    Well, I guess one could add "stock buy-backs" as a sign, too. :^)

  2. One other thought; 18 billion a year in new cash means that the P/E for BRK-A is around 20. Historically that's high, can't blame Buffett.

    1. Yahoo reports the P/E at 13.92


      We have some. Doesn't pay a dividend and as a retiree I need dividend income. But we have some and are holding it long term.


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