No. of Recommendations: 2
"I personally think you will be wrong about that, for a good long time to come. I expect them to up the pace of buybacks instead, if it should ever be needed to "burn off" excess cash.
(it isn't currently, in that the cash and short-term fixed income pile is currently smaller, not larger, than historically typical as a fraction of the size of the firm)"
I agree that the cash pile has been larger relative to Berkshire's size in the past.
However, as Berkshire grows larger, the chances the cash can be deployed sensibly in a reasonable time frame decrease. Buffett himself essentially said as much in the letter regarding potential targets.
A first class problem to have and it will be interesting to see how this plays out.
