What did Mr. Buffett say today on his 88th birthday? Of course, we learned that he has an I-pad on his desk. We also learned that he prefers to read rather than listening to podcasts (way too slow for this agile great mind to listen – he reads very fast). Nothing new about his reading preferences – he is an astute reader of quarterly company reports. We did not expect him to say that he is selling his equity positions – he is one of the strong believers in long-term investments and in the U.S. economy. He did not say that the market is overheated. We learned that he loves airlines – and has stakes in all four major airlines. He keeps his holdings under 10% - to minimize the hassle. He loves Apple – and just for two years he has built incredible fortune in this company – he has now 252 million shares worth a little bit more than $56 billion. He does not believe in packaged foods business. He started (with Charlie) to buy his own shares. All that is very interesting.
But the major lesson – and this is the most amazing part of the interview today – he is sitting on $120 billion dollars in cash! Do you think this is telling us that the market is overheated?