Buffett’s cash edge
Berkshire Hathaway’s roughly $373 billion cash pile is back in focus as a model for optionality—Buffett’s cash strategy lets him buy quality during downturns and is credited with generating long‑term returns (~19.9% annually over decades) (techi.com) (moneycheck.com). The argument resurfaced this week as markets wobble: hoard dry powder, buy fundamentals when panic hits. (techi.com).
Berkshire’s liquid reserves actually climbed to a record $381.7 billion in Q3 2025, with most parked in short‑term U.S. Treasuries yielding about 5.4% and generating roughly $20 billion in annual interest income. (economictimes.indiatimes.com)) Since October 1, 2022 Berkshire has been a persistent net seller of equities — analysts calculate roughly $174–184 billion of net sales across that multi‑year span, and Berkshire sold more than $24 billion of stock in 2025 alone. (fool.com)) Warren Buffett formally handed the CEO baton to Greg Abel on January 1, 2026, and the new CEO restarted share repurchases in early March while personally buying about $15 million of Berkshire stock. (britannica.com)) Quarterly results exposed the tradeoffs behind the cash build: operating profit in Q4 2025 rose roughly 71% to about $14.5 billion even as investment gains for the period fell to about $5.2 billion from $29.1 billion a year earlier. (cnbc.com)) Berkshire’s March filings and its definitive proxy — submitted ahead of the May 2, 2026 shareholder meeting — are being watched as the immediate timetable for any large capital deployments or a new buyback cadence. (cnbc.com)) Portfolio moves included steep trims to major tech names: Berkshire cut its Amazon stake by roughly 77% in Q4 2025 and pared other large holdings as part of the company’s multi‑quarter net‑selling strategy. (newsbreak.com))
