I am quoted in a Washington Post article on Apple’s $250 billion in cash, and Berkshire Hathaway’s $86 billion in cash.
Kass said he expects a major return by Apple to shareholders through several vehicles, including an increase in the Apple dividend, stock buybacks and a big one-time dividend. He said it is less likely that Apple would make acquisitions, given the company’s historic aversion to them. Berkshire Hathaway has little in overseas exposure because most of its profits are made in the United States. And Buffett has been reluctant for Berkshire Hathaway to pay dividends, arguing that he can make better use of the money by finding smart investments.
“His companies are sufficiently profitable, and he is very patient, that his cash has accumulated over several years,” Kass said. “But if the corporate rate is lowered from 35 percent to 15, 20, 25, it will result in additional profits for Berkshire and just about every other American-based corporation.
“If that takes place, then Warren Buffett’s pile of cash will increase much further,” he said.