Michael Saylor Criticizes Berkshire Hathaway's Cash Strategy

According to Odaily, Michael Saylor, co-founder and executive chairman of MicroStrategy, recently criticized the cash management strategy of Warren Buffett's company, Berkshire Hathaway, during an interview on the PBD Podcast. Saylor highlighted the inefficiency of Berkshire's $325 billion cash reserve, suggesting that it yields a maximum post-tax return of only 3% while facing a capital cost of 15%. This results in a negative real return of 12%, equating to an annual shareholder value loss of $32 billion. MicroStrategy, particularly under Saylor's leadership, strongly advocates for the adoption of Bitcoin as a financial asset. Saylor argues that Bitcoin offers unique advantages, such as protection against inflation and currency devaluation, and encourages companies with excess cash reserves to consider it as part of their financial strategy. However, he acknowledges that each company has unique financial goals, risk tolerance, and regulatory considerations, making universal advice impractical. Saylor speculated that even traditionalists like Warren Buffett might be persuaded to embrace Bitcoin. He referenced a statement from Buffett's late business partner, Charlie Munger, during the podcast: "I bet if I spent an hour alone with Buffett in a calm environment, by the time I walked out, he would say Bitcoin is a good idea. Charlie (Munger) would love it. We should buy some."