Berkshire Hathaway is close to a milestone that Warren Buffett doesn't want to achieve. On Friday, the company reported that it held $99.7 billion in cash at the end of the second quarter. Thanks to a collection of businesses that generate lots of cash, Berkshire's cash has been growing steadily in recent years. Because the company doesn't pay a dividend and rarely buys back its own stock, Buffett is on the hook to find ways to invest those funds. The huge cash hoard shouldn't be taken as a pure bearish signal. Remember he didn't sell assets to raise cash. In fact, he would love to spend some and he said “I hate cash” earlier this year. However, he is having trouble getting the right company at the right price.
Storm Warning: Warren Buffett stockpiling record cash
Berkshire Hathaway just reported its most profitable quarter ever. Operating income topped $4.3 billion, far surpassing analyst expectations. Thanks to Warren Buffett's savvy investing, Berkshire is now sitting on its largest stockpile of cash in its storied history. Cash and cash equivalents are above $55.4 billion for the first time ever and is 55% higher than a year ago.
3 ways to earn more on your Cash
According to a recent study from the Center for Applied Research at State Street Corp, investors around the world are stockpiling cash. With 2008 etched in our memory banks, the 5 year bull market hasn't been able to move cash from under people's mattresses. The highest cash holding are in Japan at 57% while the lowest is in India at 26%. In the US, cash has risen from 26% in 2012 up to 36% in the first quarter of 2014. This may be a smart move after a huge run in the equity markets in 2013.
With the Fed's zero interest policy firmly in place, you have to look for creative ways to earn some return on your cash. Here are 3 ideas that may do better than a big fat zero:
Asset Protection 101: Enhancing returns with a prudent bear market strategy
My early days on Wall Street
I graduated college in May of 1997 and hit the ground running when I landed on Wall Street as a research analyst. Just a year later, Long Term Capital almost crashed the global markets but the Fed stepped in and then the fun began as the Internet bubble inflated to hysteria. Taxi drivers and barbers would tell stories of how they made thousands on eBay or Yahoo, but all bubbles end in a bust. By then I was working as an assistant portfolio manager to a multi-billion dollar fund.
Andrew Wang quoted at MoneyQ&A.com
How To Get Off The Sidelines And Start Investing Again – It’s Not Too Late
Hank Coleman
The stock market has had an amazing run lately, but too much money is still on the sidelines waiting. According to a recent survey conducted by Kiplinger’s magazine, almost half of all Americans do not even know that we have had a fantastic run in the Dow Jones Industrial Average and the S&P 500 index for the past 15 months.