Warren Buffett's Berkshire Hathaway Is Sitting On A Massive $167.6 Billion Cash Pile — It's More Than The GDP Of These Countries

In 1965, a young Warren Buffett was taking a risk by purchasing textiles company Berkshire Hathaway Inc.

Fast-forward to today, and the company owns nearly 50 publicly traded securities and a handful of private companies. 

Berkshire Hathaway is sitting on a cash pile of more than $167 billion. Yes, that's a billion with a "B."

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Since Day One, Buffett has followed the same investing strategy. And with Berkshire Hathaway earning a compound annual return of 19.8% since he took over in 1965, it's safe to assume that the strategy works.

He adheres to a straightforward investment philosophy that centers on acquiring businesses known for their profitability, consistent growth and robust management structures. 

A List Of Countries With A Lower GDP Than Berkshire's Cash Hoard

To better understand just how much $167.6 billion is, here is a list of 10 countries with a lower gross domestic product (GDP) than Berkshire's cash load:

• Ukraine: $161 billion
• Morocco: $134 billion
• Ethiopia: $127 billion
• Slovakia: $115 billion
• Ecuador: $115 billion
• Oman: $115 billion
• Dominican Republic: $114 billion
• Kenya: $113 billion
• Angola: $107 billion
• Bulgaria: $89.04 billion

That puts into perspective just how much money Buffett and Berkshire Hathaway have stocked away over the years. 

How To Follow In Buffett's Footsteps

Mirroring Buffett’s investment strategy might seem daunting, given his legendary status in the financial world, but his approach is surprisingly accessible for investors at any level. 

Here's how you can follow in Buffett's footsteps and potentially carve out your path of investment success.

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Start With A Long-Term Perspective

Buffett's investments are not about quick wins; they’re about believing in the long-term potential of the companies he invests in. He chooses companies with enduring qualities and a proven track record of growth. 

As an investor, focusing on long-term gains rather than short-term fluctuations is crucial.

Invest In What You Know

Buffett advises investors to stick to their circle of competence. This means investing in industries you understand well. By doing so, you can make informed decisions based on your knowledge and expertise, reducing the risk of unexpected setbacks.

Look For Companies With Competitive Advantages

One of the key factors in Buffett's strategy is investing in companies with a strong moat. This refers to a business’s ability to maintain competitive advantages over its competitors to protect its market share and profitability. These advantages can be brand recognition, proprietary technology or regulatory barriers.

Value Investing

Buffett is known for his value investing approach, looking for stocks that are undervalued by the market. He assesses the intrinsic value of a company based on its fundamentals, such as earnings, dividends and growth potential, and invests when its stock is trading for less than what he believes it is worth.

Patience Is Key

Patience is a virtue in investing, and Buffett exemplifies this. He waits for the right opportunity to buy stocks at a price that makes sense. Once he invests, he holds onto his positions for years, if not decades. 

This patience allows investments to mature and compound, which has been critical to Berkshire Hathaway’s success.

Consulting a financial advisor can help you better understand how to invest in your future. A professional can offer personalized advice to help you make the best possible short- and long-term investing decisions.

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*This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions.

Chris Bibey has written about personal finance and investment for the past 15 years in a variety of publications and for a variety of financial companies. He is not a licensed financial adviser, and the content herein is for information purposes only and is not, and does not constitute or intend to constitute, investment advice or any investment service. While Bibey believes the information contained herein is reliable and derived from reliable sources, there is no representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the information.