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How much are you allocated in cash?


Mephistopheles

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Just thought I'd bump this thread, since there seems to be more interest in bull markets, 'shots heard round the world', etc on the board these days than at any other time in the year and a half since I've been reading.

 

Read the other day that Buffett and De Vaulx both have record amounts of cash and a few other value firms seem to be doing something similar.

Wondering if anyone has more cash now than they did 1 year ago, or 2 or even 3 when there was bunches of stuff on sale.

 

As for me, in the past 18 months this is the most cash I've held percentage-wise.

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As per the Second Quarter 2013 report, Berkshire has $31.2B in cash and cash equivalents. This is down from Dec 31, 2012 balance of $42.4B.  (Reduction of 36%)  Definitely not sitting on record cash amounts...

 

Tks,

 

Berkshire certainly isn't sitting on record cash amounts right now. If it was, it would not be for a concern over the economy, the Fed, or the valuation of the general stock market.

 

I could be wrong. This is where I read it - http://blogs.wsj.com/moneybeat/2013/07/21/investors-struggle-with-cash-conundrum/

 

Are they missing something?

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As per the Second Quarter 2013 report, Berkshire has $31.2B in cash and cash equivalents. This is down from Dec 31, 2012 balance of $42.4B.  (Reduction of 36%)  Definitely not sitting on record cash amounts...

 

Tks,

 

Berkshire certainly isn't sitting on record cash amounts right now. If it was, it would not be for a concern over the economy, the Fed, or the valuation of the general stock market.

 

I could be wrong. This is where I read it - http://blogs.wsj.com/moneybeat/2013/07/21/investors-struggle-with-cash-conundrum/

 

Are they missing something?

 

My mistake, appreciate the correction.

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I do not have the exact figures in front of me but I am sitting on around 12% cash. (This is my highest cash balance ever)  At the same time, I am also paying down my leverage quite aggressively otherwise my cash holdings would be a bit higher.  The joys of waiting for the next fat pitch!!!  :)

 

Tks,

S

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I think the question of cash allocation is a probably a good one if you're trying to get a feel for how many investment ideas a manager has at any given time. I would just posit that being a "value" investor does not preclude having a zero cash balance when the valuation of the general stock market is irrationally high, or there's "economic uncertainty". Similarly, it doesn't preclude having a large cash balance when general market valuations are very low. No matter the environment, the question always is, can I buy dollar bills for 50 cents?

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  • 2 years later...
Guest Grey512

Perhaps it is time to revive this old thread!

Curious as to how much cash the COBF board holds during these interesting times in the markets.

 

I'm at about 30% cash.

 

 

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I was pretty heavily in cash through August - but had to make a large withdrawal from my investment account to fund a move, so that removed about a 10% portfolio allocation to cash.

 

Right now, I'm about 5-7% in cash with another 5% straight short of the SPY index that I've been building. The cash yield from my portfolio, including options sales, is around 4% which mostly remains in cash as well so the cash number is growing most every month.

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In the IB accounts I manage maybe 1% right now is not tied up. I use the cash balance ~10-15% to sell cash covered puts, spreads, and condors. Right I have about 6% allocated to a Brk.B $120-$115 put spread expiring in November. I've written this put spread quite a few times this year. The contract paid 11% for 2 months (55c on $5). The spread is kind of a life insurance policy on Buffet, where I am the insurance co... 

 

 

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