Berkshire's $150B Cash Not a Sign Buffett Sees Markets as Overvalued
• Berkshire Hathaway is sitting on a record $150B cash hoard, leading some to claim Buffett sees market as overvalued • But Berkshire's cash as a percentage of assets is unchanged historically at 15.7% - the dollar value is just bigger because Berkshire grew • Changes in Berkshire's cash levels do not actually correlate inversely with market ups and downs as would be expected if reflecting Buffett's market views • Drop in Berkshire's cash allocation in 2022 reflected a major acquisition, not a view markets were undervalued • Can't conclude Buffett sees markets as overvalued based on Berkshire's current cash allocation