The level of liquidity may be slightly overstated given the accessibility of cash holdings at Berkshire’s financial products businesses. But confirmation of the cash-pile inevitably gave rise to speculation over possible acquisitions, although it would be surprising if Buffett was in the buyers’ circle given his penchant for acquiring businesses at sensible prices with the prospect of good returns on equity.
More likely, Berkshire’s cash position simply reflects the wider trend in managed money through most of 2016, as investors have gradually turned away from risk in equity markets through the latter, as anxieties coalesced over a series of issues, including Brexit, the stability of Deutsche Bank and the US Federal Reserve’s policy on interest rates.
