“During the episodes of financial chaos that occasionally erupt in our economy, we will be equipped both financially and emotionally to play offense while others scramble for survival,” Buffett said in the letter, which accompanied Berkshire’s 2010 annual report. “That’s what allowed us to invest $15.6 billion in 25 days of panic following the Lehman bankruptcy.”
From Bloomberg, the full article (its focus is on the buyback but the above quote is mentioned in passing): http://goo.gl/AzguA
The moral of this story: Though Buffett kept a huge cash reserve, it never hurts to keep a reasonable cash reserve. When the opportunity presents itself, you'll be ready.
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