Warren Buffett's financial moves are respected so highly that even other billionaires are looking to follow suit.
Billionaire John Malone, who is the chairman of Liberty Media LSXMA, mentioned in a recent earnings call of the company that Buffett and his famous company Berkshire Hathaway holds a large amount of cash and other liquid assets in preparation for bargain investments.
"If you look at Warren Buffett, he's sitting on a monstrous pile of cash right now," Malone said during the company's recent investor day and was reported by Business Insider.
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As of September, Buffett's company owns over $157 billion in cash and other liquid assets, according to a recent earnings report.
Malone, whose Liberty Media owns the likes of motorsport league Formula 1, referenced Buffett as his example for his company's business. He believes it's important to have a business that is generating cash in order to diversify its investments by adding other assets to drive further growth.
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Buffett's company does exactly that by buying stocks and other business through the cash generated by its numerous subsidiaries. These investments ideally bring steeper growth than simply investing in bonds.
Buffett has famously gained from investing in many of the most successful business. such as Coca-Cola and American Express. Berkshire Hathaway, which he has run since 1965, has gained at a rate of nearly 20% as of 2022, much higher than the average rate of return of the S&P 500.
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