BERKSHIRE HATHAWAY INC · News & developments
Berkshire Hathaway's Cash Fell From $397 Billion to $366 Billion in a Single Quarter
Source: finance.yahoo.comNeutral
Berkshire's reported cash balance declined from $397 billion to $366 billion in one quarter, a $31 billion reduction. The headline attributes the change to increased deployment of capital rather than a price move in the shares.
Why this matters
The decline indicates that Berkshire is moving part of its historically large liquidity reserve into investments and buybacks, which could improve future returns on capital if deployed well. It also reduces the balance-sheet cushion available for insurance losses, acquisitions or market dislocations; the supplied headline does not identify the full uses of cash.