👉 Background: Warren Buffett is the investment wizard (or oracle) who took control of Berkshire Hathaway in 1964. If you invested $5,000 in Berkshire Hathaway back then, it would be worth $140 million today. Not bad at all.

👉 What happened: Now, Berkshire Hathaway has announced earnings of $10.76 billion for the past year. But there's one big problem - it's struggling to find big-ticket deals.

👉 What else: In fact, it's currently sitting on a record $157 billion USD. And while that's okay for now, there may come a time when Berkshire starts to feel the pressure to start deploying its cash.

What's the key learning?

💡When it comes to funds management, there are two important factors:

1. Don't lose your clients money.
2. Actually make your clients money.

💡Fund managers are paid fees to actively manage the funds of their investors - often 2% management fee and 20% of any profits. So they need to deploy funds constantly to continue growing their assets under management.

💡 But  Berkshire Hathaway doesn't operate like a traditional fund manager. Ot doesn’t charge its shareholders any direct management fee like a traditional fund manager so it can get away with holding money in cash. And the results speak for themselves.