OMAHA, Neb. (AP) — Greg Abel paid tribute to his predecessor Warren Buffett while promising in his first shareholder letter that Berkshire Hathaway won’t retreat from investing or make significant changes in the way it operates.
Abel said he will always maintain Berkshire’s financial strength but investors shouldn’t look at the company’s $373.3 billion cash as a sign that it’s not interested in new investments. The number is actually down slightly from the third quarter’s $382 billion. Abel said that cash acts as “dry powder” to ensure Berkshire is ready to act at a moment’s notice.
“Our balance sheet is a strategic asset to be deployed at the right time. It allows us to act decisively, invest when others are tentative or fearful, and stand firm when financial storms roll through,” Abel wrote…