No. of Recommendations: 5
> True. Cash has more than doubled just in the last 2 years. As you say it is unlikely to be accidental. Unfortunately they didn't really share the thinking behind this in the annual meeting.
> What is also true is that the problem of what to do with the enormous amount of cash is now Greg Abel's to tackle. The concern that some of us feel is his lack of credentials in successfully investing anything approaching this amount. Although he was impressive in the AGM as an operator, this issue was not really tackled head on.
> Muted buybacks and Abel sitting on $400 billion waiting for a meltdown to deploy is not really a prospect that leaves me feeling particularly optimistic about superior returns long term. We will have to wait and see how things pan out.
I didn't get any responses to my last post, but that is really my issue.
At this point we are net long USD, exposed to inflation, running an collection of operating companies mostly concentrated in the US, and net long US equities and I don't particularly agree with this.
There has to be a target cash position and goal to collecting the cash. I've increased my own BRK holdings this week, but at the same time I want BRK and Abel to do better in articulating the goal behind the cash hoard. Being a source of systemic strength in the US economy and financial system is great. Do we need more cash to do that effectively? It feels like if that is the goal, there is nowhere near enough. If the goal is to opportunistically pursue acquisitions, that's also great. If the magic list of targets exceeds current levels and we expect a downturn, we also need more cash. They should suspend buybacks and borrow money.
I'd probably state it more sharply than my last post. I *do not* extend the current BRK leadership the same level of trust I did previously. I want clearer plans. Obviously my anonymous demands on a small but mighty internet forum are not going to move mountains, but I'm sure BRK leadership will have to deal with this sooner than later.
