Chart of the Week

Warren Buffett and Berkshire Hathaway are an amazing illustration of successful long term compounding of returns but today they find themselves sitting on almost $US150bn of cash and stock markets are racing away without them hence Mr Buffett has been spending billions of dollars buying his own stock. While this phenomenon remains in play its hard to imagine stocks falling too far i.e. there’s still plenty of money looking for value in a highly priced market.