Subject: Re: Life Beyond Cash
Berkshire’s existing massive portfolio of productive businesses continues compounding every day whether a major acquisition occurs tomorrow or not.

For compounding to occur, the earnings generated by the operating businesses have to be re-invested in opportunities that generate good returns on the capital deployed. If the majority of the free earnings keep sitting idle for long periods, it will show up in a decreasing rate of compounding for the overall business. Everyone is aware that Berkshire has a large asset base throwing off circa $40b odd in cash flow annually. It is how that is going to be used by Abel that is the core question.