Subject: Re: IV
I think you may be too conservative with your cash buffer. Even if you assume that 30% of cash or $51 BB will never be invested in equities. It is still invested in something. Cash which is really short term fixed income. That certainly is not worth $0. Most insurance companies hold only fixed income. So what is the problem. Maybe not optimized like other BRK funds, but certainly worth something.

Sure, 51 billion dollars - can I even type that with a straight face? - I can't fathom how much that really is. But, thinking in the abstract, Berkshire will always keep a lot of cash around (or short-term fixed income) while they have a large insurance operation. It earns interest, but likely not hardly anything over inflation.

I go back and forth on it. It drops my 5-groves by $23/share. Not a big deal.