Umm, yes? They have a 100 billion dollars of cash on hand.
Or in other words, they have no idea what to do with that money, so they rather have it waste away, and lose money to inflation.
Berkshire Hathaway has basically admitted that it has no idea what to invest in. Because if it DID have an idea of what to invest in, well then they would put their money into that, as oppose to continuing to set it on fire due to inflation.
Perhaps in the PAST they had a good idea of what to invest in. But those days are no longer.
Past performance is not a prediction of future performance.
Having cash on hand as an investment company is not prima facie evidence of cluelessness, IMO. Mr Buffet is famously patient and selective about what Berkshire invests in. If he believes that overall assets are inflated beyond reason and that too much other money is sloshing around chasing companies, it’s entirely reasonable to wait on the sidelines until a moment when his capital is properly valued.
Past performance is not a guarantee of future performance.
It is however a reasonable predictor of future performance, IMO.
Berkshire Hathaway isn't a company like Amazon or Apple. They don't have a business or a product to invest in. They are a investment company, which has to identify successful businesses and invest there.
Also after a while so you sort of max out of how much you can play that game over the years. And Warren Buffet is a man who is very picky about where he puts his money.
Its hard to get a never ending supply of companies with Moats.
Or in other words, they have no idea what to do with that money, so they rather have it waste away, and lose money to inflation.
Berkshire Hathaway has basically admitted that it has no idea what to invest in. Because if it DID have an idea of what to invest in, well then they would put their money into that, as oppose to continuing to set it on fire due to inflation.
Perhaps in the PAST they had a good idea of what to invest in. But those days are no longer.
Past performance is not a prediction of future performance.