Warren Buffett: Merchant Banker Of Last Resort

Found via the Corner of Berkshire & Fairfax.

In financial markets, judge operators by what they do not what they say or intend to do if stars are properly aligned.  Reading the Berkshire Hathaway 10-Q reveals a somber point of view in terms of opportunities readily apparent and available to market operators of Warren Buffett’s scope and vision.

The first page of the 10-Q is a detailed consolidated balance sheet and it immediately adumbrates questions like why is there so much cash on the balance sheet?  Year over year, for the June quarter, cash rose approximately 10 percent, from $33.5 billion to $36.8 billion.  Considering the billions of Berkshire’s total investments in marketable paper, the ratio of cash tots up to almost a 30 percent position.  Even relating cash to Berkshire’s net worth we are talking 20 percent.