Berkshire continues to have the vast majority of its company invested in
business ownership: 189 companies 100% of the stock —and what gets all of the media attention—and outsized attention here—partial business ownership through stocks.

Buffett stated this in a not so subtle way in this report…..matters we’ve kicked around here in our P/B comparison discussions. Truth is— you’d think he was hiding in a bunker based on what he called out as erroneous reporting. Cash holdings and no media perspective. He called people out on this. Please, folks, listen to what the Chairman says about these issues this weekend and previously: the importance of look through earnings, the clear, ongoing transition towards subsidiaries and away from equities over this millennium, and cash relative to a company worth >$1 Trillion and relative to its historic cash holding. This is BUFFETT’s Gospel—not mine.

Look at the earnings—it’s a machine pumping out nearly $1 Billion a week in operating earnings. That’s overwhelmingly from a business OWNERSHIP engine. You don’t get that in a bunker!


Meanwhile ..YET..the optionality Buffett has created is unprecedented. In a market decline he could buy several of the largest blue chip companies in the world with his cash. Paid 4.3% guaranteed while he waits.

Its heads I win…tails I win. Buffett has always played at a different level. Most people can’t comprehend this risk reward proposition. I feel like I’m watching an old Miller Lite commercial “Tastes great…no..less filling”.

“buffett is on OFFENSE generating $1 Billion a week in op earnings..no….Buffett is on DEFENSE $320 billion+ in cash!.