How to Value a Stock Based Off Cash

The purpose of cash is kind of what I talked about before, where if a company is trying to pay out more dividends than it's earning, that means it's got to draw from its cash balance. You don't know who's swimming without their pants off or something until the tide goes in. Warren Buffett's Berkshire Hathaway took assets and reinvested in bought companies either outright or bought shares in other companies.