In the 2004/2006 timeframe when Warren was getting more cautious and letting cash accumulate, Berkshires market cap, if I recall, was about 1/6 it’s present market cap. Multiple that $20 Billion you referenced by 6…then add a number that represents Buffett later admitting he should have gone more “all in” —and I think you comfortably get something north of $200 Billion. For what you reference.

BTW, I don’t think this is part of some grand specific plan. I think it’s a Put with no expiry on the greater than very small chance of a systemic blowup… in an overpriced market, with a vast overweight on an overloved expensive Apple.

Getting 4% liquid, risk free is not a bad place to be overweight. The optionality it buys is enormous. You get maybe $15 billion a year 100% safe with a free, no expiry Armageddon put that could pay in the low $Trillions. What’s wrong with this at S&P 23X in a debt bubble?

Berkshire Hathaway FAQ

---

Contact Shrewd'm
Contact the developer of these message boards.