Why does Warren Buffett believe Berkshire Hathaway can survive and thrive in poor economic environments?

Berkshire Hathaway has
(1) a large and reliable stream of earnings
(2) massive liquid assets (Cash)
(3) no significant near-term cash requirements

The answers come directly from Warren Buffett. I highly recommend everyone to read his reports. A lot of great advice for new, old, small, and large investors!

“I believe the chance of any event causing Berkshire to experience financial problems is essentially zero. We will always be prepared for the thousand-year flood; in fact, if it occurs we will be selling life jackets to the unprepared. Berkshire played an important role as a “first responder” during the 2008-2009 meltdown, and we have since more than doubled the strength of our balance sheet and our earnings potential. Your company is the Gibraltar of American business and will remain so.”
Warren E. Buffett

“Financial staying power requires a company to maintain three strengths under all circumstances: (1) a large and reliable stream of earnings; (2) massive liquid assets and (3) no significant near-term cash requirements.”
Warren E. Buffett

Source: Berkshire – Past, Present and Future 2014 Report by Warren E. Buffett

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