The growing cash reserve of Warren Buffett‘s Berkshire Hathaway Inc. (NYSE:BRK) could be a sign of potential market trouble in the future.
What Happened: The wealth management giant held a record $157 billion in liquid assets as of Sept. 30, representing 15% of its $1 trillion total assets. This figure equates to 20% of the company’s $783 billion market capitalization as of last Thursday.
“I think he sees trouble next year,” said Lee Munson, president and chief investor of Portfolio Wealth Advisors, reported Business Insider.
“It means be cautious. He doesn’t see any screaming deals.”
In May, Buffett warned of an impending “different climate” in the U.S. economy, predicting profit dips for most of Berkshire’s subsidiaries.
Buffett, a renowned value investor, ensures that Berkshire always maintains at least $30 billion in liquid assets to fulfill its financial obligations. This financial strategy also ...