Berkshires Massive Cash Holdings

Berkshire's Cash and Cash Equivalent Position

Berkshire's Massive Cash Holdings

Berkshire Hathaway's balance sheet includes a staggering 144 billion in cash and cash equivalents excluding the holdings of BNSF and BHE. Of this sum, 120 billion is held in US Treasury securities.

Comparison to Publicly-Held Companies

In comparison, the 5000 or so publicly-held companies that trade daily on NASDAQ, the NYSE, and related venues have a combined cash and cash equivalent position of only 200 billion.

Implications for Investment Strategy

An analysis of the above criteria leads to the potential conclusion that Berkshire Hathaway (BRK) may outperform the S&P 500 index in the future. Passive investors may consider allocating a higher proportion of their portfolios to BRK.