Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd


The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
Unthreaded | Threaded | Whole Thread (4) |
Author: mungofitch 🐝🐝🐝 GOLD
SHREWD
  😊 😞

Number: of 21939 
Subject: Re: Buffett Cash Hoard: Why $397 Billion Sits
Date: 05/18/26 5:23 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 27
...holding that much cash during a sustained bull run...

The most rational portfolio construction method is to be heavily long equities when the upside is large and the downside small, and the reverse. Consequently the most sensible portfolio is one that is very cash heavy (and non volatile) at times of high valuation levels and all-in (and therefore very volatile) at times of low valuation levels. It's not emotionally easy, but it's the most profitable way to go.

So, "holding that much cash during a sustained bull run" is precisely what the smartest portfolio manager would do, particularly during what seems to be the later stages of a bull run. The seem to be complaining about management doing what makes most sense.

Of course, one could try to time the market, thinking "I'll ride it up into overvaluation and then sell before everyone else does". But just imagine trying to sell $100bn of equities when the panic starts and there's a huge crowd between you and the exit...

Jim
Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to mungofitch here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 21,448 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
Unthreaded | Threaded | Whole Thread (4) |


Announcements
Berkshire Hathaway FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community