Warren Buffett: Permanent earning power

“We don’t like having excess cash around. We like even less doing dumb deals because we do them forever. I mean, if we make a dumb deal, it just sits there. We don’t resell it three months later by having an IPO of it or something of the sort. So you’re right to say that we should be very uncomfortable about the fact that we’ve got the cash. But it’s also important that we not be so uncomfortable that we go out and do something just to be doing something…. The goal of that cash is to be translated into permanent earning power over time.” –Warren Buffett.