Warren Buffett’s cash pile soars. What it could mean for you.

livemint.com:

₹25 trillion. And Buffett isn't just sitting on it; he's earning significant interest income from US government bonds. As the Oracle of Omaha sits on this colossal pile of cash, the financial world is abuzz with speculation.

Why is Buffett hoarding cash, and what does he see that others don't? We will never know why Buffett holds so much cash. But that does not stop us from making a calculated guess. Perhaps it's also the right time to delve into why Buffett has been selling quite a bit of his holdings in recent months, most notably chunks of Bank of America and Apple Inc, both of which have been staples of his core portfolio.

With that, let's get to the heart of the matter. The best way to start this exercise is by ruling out some common reasons why Buffett might be selling. First, it’s very unusual for Buffett to sell because of geopolitical tensions.

So, if you think it's related to wars around the world, that’s best ruled out. Although Buffett has mentioned that a nuclear war worries him the most, I think the world is far from that scenario. But if Buffett perceives something imminent, that could be a reason, though it seems unlikely.

Second, it’s even more unlikely that Buffett is selling because he thinks the US markets are overheated and could take a hit. Buffett has often said his preferred holding period for a great business is "forever." So, it’s improbable that he has suddenly shifted to a short-term outlook due to market fluctuations. Third, and again quite unlikely, is the notion that Buffett is accumulating cash for a big buyout.