Warren Buffett’s $200 Billion Cash Reserves and His Preferences for a Successor: A Look at Berkshire Hathaway’s Q2 Performance
Warren Buffett, the legendary US investor, is known for his frugal habits and his preference to hold onto his money rather than spend it. His holding company, Berkshire Hathaway, currently holds a record amount of reserves with $189 billion in cash and short-term government bonds at the end of the quarter. Buffett expects these reserves to climb to over $200 billion after the current quarter.
Buffett is always on the lookout for low-risk investments that can bring in significant returns. Berkshire’s diverse portfolio includes companies such as Geico, BNSF, and Duracell. In the last quarter, Berkshire’s insurance business was a key driver of the increase in operating profit to $11.2 billion from just under $8.1 billion in the previous year. At the annual shareholder meeting, Buffett revealed his preferences for a successor, suggesting Greg Abel as his designated successor to make investment decisions. However, the final decision will be made by Berkshire’s board of directors.
Despite being 93 years old, Buffett has no plans for retirement and hopes to continue in his role at Berkshire Hathaway. He recently acquired a stake in Paramount Studios but experienced a loss due to their recent performance. The company also reduced its stake in Apple during the first quarter of this year by selling 13 percent of its shares.
During his speech at the annual shareholder meeting, Buffett expressed concerns about fraud with artificial intelligence (AI), particularly with creating deceptively realistic artificial photographs of people. Despite the potential benefits of AI, Buffett highlighted the potential for harm and uncertainty about its future impact on society.
Overall, Warren Buffett continues to keep his eye on low-risk investments while maintaining control over Berkshire Hathaway’s extensive portfolio and operations despite his age.
