Overview
- Berkshire reported nearly $400 billion in cash at the end of the first quarter of 2026, with about $339 billion parked in short-term U.S. Treasury bills.
- The Federal Reserve's federal funds target of 3.5%–3.75% means those Treasury holdings now produce reliable low single-digit, low-risk returns rather than sitting idle.
- Greg Abel has started to deploy portions of the cash pile, paying about $6.8 billion for homebuilder Taylor Morrison in early June and committing roughly $10 billion to a private placement in Alphabet, together using about $17–18 billion so far.
- Abel appears to follow Warren Buffett's caution about overpaying by waiting for sensible prices, while signalling a greater willingness to act when scale or valuation advantages exist, which keeps Berkshire ready to buy in a market downturn.
- Investors should watch the Fed's rate path and sector opportunities such as housing and big-tech spending on AI to see whether Berkshire continues to earn Treasury yields or speeds up acquisitions.