No. of Recommendations: 2
The big problem with Berkshire now is that it is so big, there is nothing reasonably priced that he can invest the float in anymore, and recent stock picks (as in, in the last 20 years), have not worked out very well, with one big exception.
Yeah, we talk about Berkshire's use of leverage via float - below is the ratio of cash + fixed income to float from 2010 to 2013:
Cash+Fixed/Float
105%
92%
100%
94%
101%
99%
102%
109%
105%
111%
113%
109%
92%
111%
With hindsight, it seems they could have used some of that cash more productively.
But then again, I'm happy with my results owning Berkshire. I'm stood at my home office desk right now, but I ain't workin'.
Be interesting to see that cash number on Saturday. What do y'all think? $170bn?
