Warren Buffett has made it clear that he’s increasingly uncomfortable with the massive cash pile sitting on Berkshire Hathaway’s balance sheet — and says he would gladly put as much as $100 billion to work if the right opportunity appeared.
In an interview recorded last May and aired this week as part of CNBC’s two-hour special “Warren Buffett: A Life and Legacy,” the legendary investor explained that the problem isn’t a lack of willingness to invest, but a lack of deals that meet Berkshire’s standards at its current scale.
With the conglomerate now valued at around $1 trillion, Buffett said it has become extremely difficult to find businesses that are both attractively priced and large enough to make a meaningful impact on overall performance. Smaller investments, he noted, barely move the needle.
“We’re buying one or two things, but it’s peanuts,” Buffett said, referring to the limited effect most opportunities have on a company of Berkshire’s size.
Despite that challenge, Buffett emphasized that he remains ready to act at any moment. He said he would have no hesitation in deploying $100 billion immediately if he found a business with a strong model, solid long-term prospects, and a sensible valuation.
In his view, holding cash is useful for flexibility and security, but far from ideal as a long-term strategy. Buffett said he would much rather own a great business at a fair price than keep billions sitting idle, even if that cash provides comfort during uncertain times.
The comments underline a growing tension for Berkshire: its enormous success has made it harder to find investments that truly matter, even as Buffett remains eager to put capital to work when the right opportunity finally appears.