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Berkshire Holds a Record $397 Billion in Cash as Market Valuations Hit Extremes

New chief executive Greg Abel is keeping the bulk of the reserve in short-term Treasuries that yield about 3.7% to preserve firepower for very large, attractively priced purchases.

Overview

  • Berkshire’s first-quarter 2026 SEC filing, disclosed this week, shows about $397.4 billion parked in cash and short-term U.S. Treasury bills.
  • The cash build follows roughly 13 quarters of net equity selling that produced an aggregate gap of about $187 billion and continued through Warren Buffett’s handover of CEO duties to Greg Abel.
  • Management has made only limited, large-scale uses of the pile so far, including an agreement to buy homebuilder Taylor Morrison and a roughly $10 billion commitment tied to Alphabet, each representing a small slice of the reserve.
  • Broad market indicators are at unusually high levels — the Buffett Indicator hit an all-time closing high in early June and the Shiller CAPE stood around 41–41.6 in early July — a backdrop that Buffett and others have cited as a reason for caution.
  • Short-term Treasuries yielding near 3.7% generate roughly $12 billion a year on the hoard, which lowers pressure to invest immediately and means Berkshire could have outsized market influence if it deploys large sums in a future downturn; ongoing insurance-business cost pressures are an additional factor shaping allocation timing.