![]() You'll hear a lot about various kinds of money, but this is the only kind of money you're going to see throughout your lifetime," said Buffett. You can offer them all kinds of things, but this is what settles debts in the United States. Money is the only thing that the IRS is going to take from you. "This note is legal tender for all debts public and private, and that's what makes it money. In the context of discussing Berkshire's cash hoard, Buffett put up a slide of a $20 bill. ![]() And without explicitly saying it, those views still hold true today. But the one thing that won't change going back to Q2 is that we will always have a lot of cash on hand." A slight dig at cryptocurrencyīuffett and Munger are famous for their negative views on cryptocurrency. Commenting on the purchases, Buffett said, "Now we are back somewhat in our lethargic mood, but anything can change at Berkshire. Included in the purchase were 136.373 million shares of Occidental Petroleum stock at prices ranging from around $40 a share to nearly $60 a share. we wake up every morning and we want to be safer in terms of your eventual investment." "So, the one thing I can tell you about Berkshire Hathaway. We would die psychologically if we lost a lot of other people's money," Buffett said. The idea of losing, permanently, other people's money, people who trust us, that's just a future I don't want to have. If I went broke it wouldn't really make any difference. "We have an extreme aversion to incurring any permanent loss with your funds. One of the reasons Berkshire invests the way it does and keeps a lot of cash is because it feels a duty to protect its partners. By cash, Berkshire doesn't mean commercial paper or lines of credit. Keeping a large cash position and protecting investorsĮven after spending roughly $50 billion on equities in the first quarter, including large investments in Occidental Petroleum and HP, among others, Berkshire maintained a hefty cash position of $106 billion at the end of the quarter. But it also has to do with value stocks finally beginning to outperform growth stocks. Much of the outperformance is due to Berkshire's concentration in market-beating stocks like Apple, Coca-Cola, American Express, Chevron, and Occidental Petroleum. And now, Berkshire is officially outperforming the S&P 500 over the last 10 years, with a 300% total return versus less than 260% for the S&P 500. ![]() But so far in 2022, Berkshire is up 8% while the S&P 500 is down 13%. 2021, Berkshire Hathaway underperformed the S&P 500 - producing a total return of 251% compared to the S&P 500's total return of 266%. ![]()
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