EssaySeptember 2, 2025
Buffett’s Bearishness Tramples on the ‘Money Multiplier’ Myth
Berkshire Hathaway has $340 billion in cash and cash equivalents. Media speculation indicates that the sidelined funds signal Warren Buffett’s belief that corporations are presently overvalued.
Without presuming to know the precise thinking of one of the world’s greatest investment minds, it’s better to focus on the smaller truths of Berkshire’s cash stash. Specifically, it eviscerates the popular neo-Austrian School view that all-powerful banks, seemingly for being banks, multiply money into worthlessness…