The Fed Just Gave Berkshire a Raise. Here’s How Big It Is.
Berkshire’s $365 billion in cash is a valuable asset in a rising-rate environment.
Overview
Berkshire Hathaway (NYSE:BRKA)(NYSE:BRKB) had about $365.5 billion in cash and short-term Treasury securities at the end of June.
To be sure, this has been investors' largest criticism of Berkshire over the past few years, and for good reason. After all, it would certainly be preferable to deploy that money in stocks or acquisitions that produce double-digit annualized returns. But it's also important to know that Berkshire's cash isn't just sitting in a warehouse. It's invested in interest-earning instruments. And it's an asset that gets more valuable as rates rise.
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Originally published at www.fool.com.
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