“Another reasonable inference is that the recent higher short term interest rates make it a little less unattractive to sit on a bigger pile of cash”

Particularly when inflation has reduced significantly…

Stocks are definitely not cheap. With the flash crash on Monday, I took a look at Amazon’s valuation. It’s clearly an incredible business but it was sobering to see the extent of share based compensation backed out of what they call free cashflow. Certainly made me step away and reinforce just how expensive some of these great big tech names are, if you include SBC. The Berkshire capital allocators must find valuations much too high when looked at in true owner earnings terms.

Of course the really interesting thing for Berkshire shareholders: what happens now? The current cash pile is clearly in the territory, that Buffett can’t stand still for a long period now. It will be interesting to see what happens now.