Billionaire Charlie Munger Reveals The Reason Berkshire Hathaway Is Sitting On $88 Billion in Cash – Yahoo Finance

The S&P 500 dipped by 19% in 2022, but stocks still don’t seem cheap to Charlie Munger, Warren Buffett’s billionaire partner at Berkshire Hathaway.
“In my whole adult life, I have never hoarded cash, waiting for better conditions,” Munger said in an interview in late 2022. “I’ve just invested in the best thing I could find.”
Yet he acknowledged that Berkshire Hathaway is sitting on billions of dollars in cash. The reason isn’t that Buffett and Munger think they can wait for stocks to get even cheaper — the wager known as “timing the market.”
Instead, Munger said bluntly that Berkshire isn’t buying anything “because there’s nothing we can stand buying.”
It’s an amazing statement. Even with a stock market downturn that would presumably result in dozens or hundreds of stocks trading on sale, at bargain-level prices, the world’s most famous value investors aren’t remotely tempted to dive in.
Berkshire Hathaway — and every other major name in finance — is somewhat limited in what it can do. By law, major financial institutions and billionaire investors can’t buy more than 5% of a company without submitting a 13-D filing as a beneficial owner to the Securities and Exchange Commission and all of the headaches that come with it.
To stay updated with top startup investments, sign up for Benzinga’s Startup Investing & Equity Crowdfunding Newsletter
This essentially shuts Buffett out of the world of microcap investing — unless Berkshire Hathaway decides to jump through those regulatory hoops. And even if the company chose to do so, and uncovered a 10 times opportunity, the upside would be barely noticeable to Berkshire Hathaway. If a $2 million stake turned into $20 million, that wouldn’t move the needle for a company that collects hundreds of millions of dollars in dividends each year from its stake in Coca-Cola alone.
But for ordinary investors, it’s a different story. The world of startup investing — legally closed to everyday investors for decades — is now open to the masses.
Sensate is one company generating chatter in Silicon Valley after patenting an anti-stress device that’s helped it grow revenue by 363% year-over-year at a time when S&P 500 companies are reporting revenue growth of just 11% on average. With revenue of $2.8 million in 2021, Sensate is the kind of company Buffett and other major financial names can’t claim a meaningful stake in, but for a limited time, everyday investors can invest here.
See more on startup investing from Benzinga.
Never Lose Your Things Again – The Startup Pouring Gasoline on the Apple AirTag
Martin Tobias Invested in Google, DocuSign, OpenSea and Over a Dozen Other Unicorns – Here’s What Startup He Is Investing in Next and How to Invest Alongside Him
Don't miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
This article originally appeared on
© 2023 Benzinga does not provide investment advice. All rights reserved.
Related Quotes
Cathie Wood's ARK Innovation ETF is back — and back big. It's the top diversified ETF again this year so far, largely due to big winners.
Her Ark funds have snagged 806,663 Tesla shares in January alone, recently valued at $105.4 million.
You won’t even owe him a penny for his thoughts.
Should investors be excited or worried when a stock's 50 -day simple moving average crosses above the 200-day simple moving average?
Silvur founder and CEO Rhian Horgan lays out how to prepare for retirement.
The Dow Jones Industrial Average has increased just 6% in the first half of Biden's term, well below the historical average.
Buy cheap? Even in the stock market, buyers like to find a bargain. Defining a bargain, however, can be tricky. There’s a stigma that gets attached to low stock prices, based on the reality that most stocks don’t fall without a reason. And those reasons are usually rooted in some facet of poor company performance. But not always, and that’s why finding stock bargains can be tricky. There are plenty of low-priced equities out there with sound fundamentals and solid future prospects, and these opt
Warren Buffett's Berkshire Hathaway couldn't escape the stock market's wrath in 2022. Of the 50 stocks Buffett owns, only 10 stocks gained in value last year. In the third quarter alone, Berkshire Hathaway lost $10.1 billion on its investments in equities.
The U.S. Federal Reserve will end its tightening cycle after a 25-basis-point hike at each of its next two policy meetings and then likely hold interest rates steady for at least the rest of the year, according to most economists in a Reuters poll. Fed officials broadly agree the U.S. central bank should slow the pace of tightening to assess the impact of the rate hikes. The Fed raised its benchmark overnight interest rate by 425 basis points last year, with the bulk of the tightening coming in 75- and 50-basis-point moves.
Our call of the day from TheoTrade's Professor Jeff Bierman warns that the next group of stocks to come under pressure will be consumer staples.
The shareholders hope to persuade jurors that the posts were false and therefore violated securities laws.
Richard Edelman, CEO of one of the world's largest communications agencies, spoke out against Twitter at the World Economic Forum in Davos.
As Big Tech continues to reel from its massively difficult 2022, some of the sector's biggest names are laying off employees by the thousands.
One executive with a pulse on global companies says they're displaying more cautiousness when it comes to investing.
(Reuters) -U.S. Federal Reserve Governor Christopher Waller, one of the leading inflation hawks and an advocate last year of aggressive rate increases, supports scaling back to quarter-point rate hikes at the Fed's next meeting, all but cementing another step down in the pace of the central bank's monetary tightening. "Based on the data in hand at this moment, there appears to be little turbulence ahead, so I currently favor a 25-basis point increase at the (Federal Open Market Committee's) next meeting," on Jan. 31-Feb. 1, Waller said in comments prepared for delivery at the Council on Foreign Relations in New York. He added that upcoming rate moves, coupled with an expected continued decline in inflation, left the central bank "pretty close" to an interest rate "sufficiently restrictive" to bring inflation under control – the benchmark policymakers have used for considering a pause to further rate increases.
Are you retired but interested in going back to work? Unless you've developed some hobbies or have significant interests outside your career, retirement can be a lonely place. Suddenly, many of your social contacts are gone. Mental and intellectual pursuits … Continue reading → The post Working in Retirement: Why and How You Might Choose to Stay Busy appeared first on SmartAsset Blog.
Warren Buffett's Berkshire Hathaway stocks were lower Thursday. Losers outpaced winners 36 to 11 among stocks held by Berkshire Hathaway according to its latest SEC filing. Among the losers, shares of Floor & Decor Holdings Inc fell 6.
Here are three stocks that Buffett is almost certainly buying in 2023. The stock that Buffett is most likely to buy in 2023 with Berkshire Hathaway's massive pile of money is, without question, Berkshire itself. How can we be so certain that Buffett is buying Berkshire shares?
(Bloomberg) — Federal Reserve officials, heartened by an inflation slowdown, are poised to slow the pace of their interest-rate hikes for a second straight meeting and debate how much more they need to tighten to get prices under control.Most Read from BloombergHolmes Belongs in Prison, Not $13,000-a-Month Manor, US SaysGoogle to Cut 12,000 Jobs in 6% Reduction of Global WorkforceMore Young Americans Are Dying, But Not From VaccinesTreasury Taps Retirement Funds to Avoid Breaching US Debt Limit
In this article, we discuss 12 hot penny stocks on the rise. If you want to see more stocks in this selection, check out 5 Hot Penny Stocks On the Rise. Penny stocks usually trade under $5 and are favored by new investors or market participants who prefer day trading. Some key indicators that penny […]


Related Posts

Paramount Global shares jump after Warren Buffett's Berkshire … – CNBC

Paramount Global shares jump after Warren Buffett’s Berkshire …  CNBCsource

Anne Hathaway Says She and James Franco "Sucked" at Hosting Oscars – E! NEWS

Anne Hathaway isn't mincing words about her Oscars hosting gig with James Franco. The actress, 39, revealed what she really thinks of their 2011 performance as emcees during the Oct….

Anne Hathaway, Jeremy Strong, Anthony Hopkins form a Jewish film … – The Jerusalem Post

Anne Hathaway, Jeremy Strong, Anthony Hopkins form a Jewish film …  The Jerusalem Postsource

Berkshire Hathaway: Warren Buffett further unwinds BYD investment … – CNN

Berkshire Hathaway: Warren Buffett further unwinds BYD investment …  CNNsource

Berkshire Hathaway Inc. Cl B stock underperforms Tuesday when compared to competitors – MarketWatch

Shares of Berkshire Hathaway Inc. Cl B BRK.B slipped 0.31% to $305.55 Tuesday, on what proved to be an all-around mixed trading session for the stock market,…

Donald S. Hathaway Jr. – Ocala News

Donald S. Hathaway Jr. passed away on his 61st birthday, Tuesday November 15, 2022.Don grew up in New Vernon, NJ and attended Bayley Ellard high school. After…

Leave a Reply

Your email address will not be published. Required fields are marked *