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Warren Buffett sings with the University of Nebraska cheerleaders during the Berkshire Hathaway Annual shareholders meeting in Omaha.
Warren Buffett sings with the University of Nebraska cheerleaders during the Berkshire Hathaway Annual shareholders meeting in Omaha.
(LANE HICKENBOTTOM/REUTERS)

For Warren Buffett, the cash option is priceless

If holding cash in your portfolio for little return is driving you crazy, maybe it’s time to look at it the way Warren Buffett does.

Mr. Buffett, the world’s most successful (and richest) value investor, is sitting on almost $41-billion (U.S.) of cash at his Berkshire Hathaway holding company, the most in a year. Partly, that heap of greenbacks is a safety blanket. But it’s something more. As with most matters Buffett, the strategy is more complicated than it looks, Alice Schroeder says.