Berkshire’s cash pile isn’t huge in worst-case scenario, Buffett says

Berkshire Hathaway’s (NYSE:BRK.B) (NYSE:BRK.A) cash position “isn’t all that huge when you think about worst-case possibilities,” Warren Buffett said during the annual meeting’s question and answer section.

“We don’t prepare ourselves for a single problem, we prepare ourselves for problems that sometimes create their own momentum.”

The conglomerate had $137B of cash and Treasury bills on its balance sheet as of March 31, 2020.

Asked why he hasn’t invested in any companies during the pandemic crisis like the company did during the financial crisis, Buffett said “we haven’t seen anything attractive.”

Furthermore, funding was a lot easier to get this time around.

“The Federal Reserve did the right thing and very promptly,” Buffett said. “Companies got the chance to finance in huge ways in the last five weeks.”

“Berkshire actually raised more money” recently,  although it didn’t need it, he added.

Update at 7:12 PM: Regarding how Berkshire’s operating companies are handling the pandemic environment, “Very few of our businesses have required funds,” said Vice Chairman Greg Abel, who heads all operating businesses except for insurance.

Berkshire has advanced funds to the few of its businesses that did need them, he said.

This is a developing story; check back for updates.

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https://seekingalpha.com/news/3567988-berkshires-cash-pile-isnt-huge-in-worst-case-scenario-buffett-says