A lot of analysts look at Berkshire Hathaway and point to the fact that the 100B in cash that they hold isn't getting much of a return.
As in all things, many people take "pot shots" at the reigning person or organization on top. That is just the way it is.
The large cash stash of Berkshire just points out a major facet that has always been a keystone of Buffett's style of investing. Buffett doesn't optimize his holdings to always have cash at work. While optimization is common among most portfolio managers, Buffett thinks differently.
Buffett understands that he is not getting the best return on the cash at the moment. But he knows when the market turns south, the benefit of having cash when stocks are being dumped will return many times over the "loss" he is currently taking by not optimizing. The 100B dollar stockpile of cash just makes it obvious the technique he has used for great long term returns throughout his career. In Buffett’s mind, there is nothing wrong with sitting on the sideline for long periods of time and waiting for the right moment to pounce.
If you want to go a dance but can't find an attractive date, sometimes it is best to stay at home and wait for the next dance.
Timing is everything.
