i listen to Buffet quite a bit and he's been asked about his stockpile of cash in a few interviews, he's also asked about Berkshire's performance against the S&P index fund, these questions are related.
Berkshire have got so much money it's almost impossible for them to find an investment which has the potential to make more than a blip on their bottom line, they've been stockpiling cash for many years. They've underperformed the S&P for many years, not by much, but it's because they've got this stockpile of cash and cannot find a home for it. Buffett has said if they had a few million to invest they'd be enjoying superior returns because of the opportunities, but with this large pile of cash? He anticipates Berkshire will outperform the S&P but "not by much". I think the story is adding fuel to the fire, a story that could be seen in a totally different light if the narrative on the economy was different. But that doesn't sell newspapers!
