Berkshire's Record Cash Pile

Berkshire's Record Cash Pile

Warren Buffett is one of the most famous investors in the world. For more than sixty years he ran a company called Berkshire Hathaway, which owns shares in lots of well known businesses like Apple and Coca-Cola, and also fully owns companies like Geico car insurance and the BNSF railroad.

Buffett is known for being patient, careful, and for buying good businesses at fair prices. At the start of 2026 he stepped down as CEO, handing the role to his long time deputy Greg Abel.

In May, Berkshire reported its first set of results under Abel. The headline number was the cash pile. The company is now sitting on around $397 billion in cash and short term US government bonds. That is the highest amount it has ever held, and Berkshire has been selling more shares than it has been buying for fourteen quarters in a row. Speaking at the annual meeting in Omaha, Buffett said the current market does not look like a good place to put money to work and compared parts of it to a casino.

It is tempting to look at this and think the smart move is to sell up and wait too. The reality is more nuanced. Berkshire is taking an active view on markets, and even the best investors do not always get those calls right. Buffett has been building this cash pile for several years while markets have kept rising, and the gains missed in that time are real. He might eventually be proven right, or he might not.

It is also worth remembering that Berkshire is a team of full time professionals running a very specific strategy. Most everyday investors are in a different situation, with different goals, time horizons, and tax considerations. What works for one does not automatically work for the other.