Berkshire Hathaway Is Sitting on $397 Billion in Cash. It Has Been a Net Seller of Stocks for 14 Straight Quarters. The Market Is at All-Time Highs. All of That Is Happening Right Now.
Greg Abel's first quarterly report as Berkshire's CEO landed Saturday with a number that is hard to ignore. The cash pile hit $397 billion, a new record, up from $373 billion at the end of 2025. Operating earnings rose 18% to $11.35 billion. Net income more than doubled. And Berkshire was, for the 14th consecutive quarter, a net seller of equities, offloading $24.1 billion in stock against $16 billion in purchases. The company has now been quietly reducing equity exposure every single quarter since the current bull market began in late 2022. That is not a rounding error or a tactical tweak. It is a sustained and deliberate posture, maintained at record market highs, by arguably the most respected capital allocator in the world.
The key observation is not that Berkshire has a lot of cash. It is that it keeps choosing to accumulate more of it at exactly the moment when everyone else is fully invested.
Today's Setup
Berkshire's cash position has more than doubled since the start of 2024. The company sold Apple shares aggressively last year, trimmed its Bank of America stake, and has found essentially nothing worth buying at current prices. Abel's first shareholder letter framed Berkshire's role as stewardship, writing that capital "does not belong to us." The annual meeting on Saturday saw Buffett, still present and still sharp, endorse Abel fully: "He's doing everything I did and then some." The continuity of both leadership philosophy and cash accumulation behavior is deliberate. Berkshire is not sitting on $397 billion because it cannot find things to buy. It is sitting on $397 billion because it does not like what it sees at current prices.
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