Warren Buffett and the rest of Berkshire Hathaway’s (NYSE:BRK-A) (NYSE:BRK-B) management have had a lingering problem for some time: Cash continues to build up on the balance sheet and there hasn’t been any attractive way to put it to work. At the end of 2017, Berkshire had more than $116 billion in cash and equivalents — far more than the $20 billion or so Buffett likes to keep on hand.
To be clear, having a hundred-billion-dollar cash stockpile is a good problem to have, but it’s still a problem. This is money that, instead of generating returns that can then....More>>>