Berkshire's large cash balance and active capital allocation
Key Questions
What is Berkshire Hathaway's current cash balance?
Berkshire Hathaway holds $400 billion in cash, up from $373 billion in Q1, including $17 billion in T-bills. This large cash position provides significant power for capital allocation amid market conditions.
When did Berkshire resume share buybacks and at what price?
Buybacks resumed in March 2026 at $477 per share, representing 1.4x book value, marking the first since May 2024. This decision was made by Greg Abel after consulting Warren Buffett.
What recent capital deployments has Greg Abel made?
Abel deployed capital into Haemonetics for $26.3 billion, Tokio Marine for $1.8 billion in yen bonds, and achieved Q1 net sales of $4 billion. These moves reflect active capital allocation strategies.
What did Warren Buffett say about market volatility on CNBC?
Buffett dismissed market volatility as insignificant, emphasizing the power of Berkshire's cash position. He stated he is not investing in the current market.
What is Buffett's view on the AI market?
Buffett described the AI market as a bubble. He expressed caution about investing in it given the hype and risks.
What risks did Buffett highlight regarding inflation and private credit?
Buffett advocated for zero-inflation targeting, calling inflation a tax on savers. He warned of private credit risks, including a potential insurance industry bomb with $10 trillion in leverage.
How does Berkshire's cash position relate to Hormuz reinsurance?
Berkshire is involved in a $40 billion reinsurance pool for Hormuz, alongside BHSI growth and minor insurance litigation. The cash hoard supports such opportunities amid Iran-related dips.
Is Berkshire's cash pile seen as a buying opportunity signal?
Buffett reiterated the cash position amid an Iran dip, viewing it as a potential buying opportunity. This aligns with his strategy of holding cash for market dislocations.
$400B cash (up from $373B Q1/$17B T-bills); buybacks at $477/1.4x BV resumed Mar2026 by Abel post-Buffett consult first since May'24; Abel deploys Haemonetics $26.3B/Tokio $1.8B/yen bonds/Q1 net sales $4B; Buffett CNBC: volatility nothing/cash power/not in this market/AI bubble/zero-inflation/private credit risks (ins bomb $10T leverage); Hormuz $40B reins/BHSI growth/minor ins lit. Cash reiterated amid Iran dip buying opp.