Munger and Buffett had been unable to drag off one final deal collectively

Charlie Munger did not handle to assist pull off one ultimate take care of his lifelong accomplice Warren Buffett, however he remained hopeful that Berkshire Hathaway, with practically $160 billion money, will discover its elephant in the future.

“We have $160 billion in cash, plus a great credit rating we deserve. And who in the hell has that? Not very many,” Munger mentioned in CNBC’s particular “Charlie Munger: A Life of Wit and Wisdom,” which aired Thursday.

“It can’t be anything too small because it doesn’t matter how good it is, we’re of a size now where too small just doesn’t move the needle very much. So we need something big to come along and use up all our cash, and some borrowing,” he instructed CNBC’s Becky Fast in an interview performed shortly before his death this week at age 99.

The Omaha-based conglomerate held a record level of cash — $157.2 billion — on the finish of September. Buffett has been touting a attainable “elephant-sized acquisition” for years, however his latest offers did not fairly meet such lofty expectations.

Berkshire purchased insurer Alleghany Corp. for $11.6 billion last year, whereas increasing its vitality empire by buying Dominion Energy’s natural gas pipeline and storage assets for nearly $10 billion. However Berkshire’s whole market worth now approaches $800 billion.

Squeeze new lemons

Munger, Berkshire’s late vice chairman, mentioned such a mammoth deal could need to be completed by the following technology of leaders on the conglomerate.

“I don’t think it’s hopeless. It may have to be done by some different people,” Munger mentioned. “You know that next time, we may not be able just to squeeze a little more lemon juice out of the old lemons. They may have to squeeze some new lemons, meaning new people have to make the decisions.”

It could possibly be Greg Abel, vice chairman of Berkshire’s non-insurance operations and Buffett’s designated successor, or Ajit Jain, Berkshire’s vice chairman of insurance coverage operations, or Buffett’s two investing lieutenants, Ted Weschler and Todd Combs, Munger mentioned, including it may be “somebody not yet identified.”

Berkshire’s enormous conflict chest had been a trigger for concern when rates of interest had been close to zero, however with short-term charges topping 5% the money pile is now incomes a considerable return.

Through the years, Munger usually defended Berkshire’s inaction, at all times seeing the advantage of sitting on the sidelines, biding its time, letting money develop and patiently ready for a great alternative.

“There are worse situations than drowning in cash, and sitting, sitting, sitting. I remember when I wasn’t awash in cash — and I don’t want to go back,” Munger as soon as mentioned.