What should Warren Buffett do with all that cash?

Warren Buffett's Berkshire Hathaway on Friday reported earnings results that beat expectations thanks to substantial investment gains and improved results across its manufacturing, retail and service businesses.

Read MoreBerkshire profit soars 41% to a record

Warren Buffett
Adam Jeffery | CNBC
Warren Buffett

The company also revealed it was sitting on more than $55 billion in cash at the end of the second quarter, its largest cash position ever.

"Clearly Berkshire is in the market for a large deal," Jay Gelb, an analyst at Barclays, told CNBC. "We're still waiting for another large acquisition ... but our sense is, unless they see a compelling deal, Berkshire won't move to buy anything substantial."

So far, it seems Buffett hasn't found "anything that is compelling at a price that's compelling" to buy, said hedge funder Jeff Matthews.

"Buffett doesn't buy stuff just to buy stuff like a lot of companies do. He's not in this for the short term. He's not in this to make next quarter's earnings look good. And, he's not in this just to get rid of cash on the balance sheet," Matthews, general partner at RAM Partners, said on "Squawk on the Street." "He's in this for the very long term, the next 50 to 100 years, so he's looking for things that are going to satisfy Berkshire Hathaway's need for businesses in the very long run."

Both Gelb and Matthews agreed Buffett will have no problem sitting back and waiting for that perfect deal to come along, too.

By CNBC's Drew Sandholm, with Reuters.

This story has been corrected to show that Berkshire Hathaway reported having $55.46 billion in cash as of June 30, 2014, its largest cash position ever.