Buffett Sells $6 Billion More as Berkshire Hoards Record $350 Billion Cash
Warren Buffett's Berkshire Hathaway disclosed that in his penultimate quarter as CEO the conglomerate sold another $6 billion of stocks even as operating earnings surged and its cash pile climbed to a record above $350 billion. The moves underscore Buffett's continuing difficulty finding attractive investments in a high-valuation market and raise questions about how that capital will be deployed under his successor.
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Berkshire Hathaway reported details of Warren Buffett's penultimate quarter as chief executive, revealing another round of stock sales totaling roughly $6 billion even as the company's operating earnings rose and its cash reserves reached a fresh high of more than $350 billion. The quarterly filing, disclosed exclusively to Business Insider subscribers, also showed weakness in two key segments: Berkshire Hathaway Energy and the insurance investment operations both posted drops in operating earnings.
The juxtaposition of stronger overall operating performance with heavy cash accumulation and continued portfolio trimming provides a snapshot of the strategic dilemma confronting Buffett at the late stage of his tenure. A $350 billion-plus cash balance is unprecedented for Berkshire and ranks among the largest corporate cash hoards globally, giving the company substantial optionality but also posing an opportunity-cost problem for shareholders seeking higher returns on idle capital.
The $6 billion in sales — described by Berkshire simply as "cashing in" stocks — follows a pattern in recent quarters where the company has reduced certain equity positions rather than redeploying proceeds immediately into new acquisitions or big equity purchases. According to the company's disclosures, while operating earnings were up, the energy arm and the insurance investment segment saw declines, reflecting uneven performance across Berkshire's sprawling businesses.
For markets, the headline figures illuminate two competing forces: a billionaire investor known for aggressive capital deployment when bargains appear, and a valuation environment that Buffett still views as unattractive. The repeated accumulation of cash suggests persistent caution; it also preserves a war chest that could be decisive if a large, price-compelling opportunity arises. For investors and analysts, the question is whether that cash will be a latent value driver — enabling opportunistic deals — or a drag on future per-share performance if it sits uninvested for years.
There are broader policy and market implications. Corporate cash accumulation of this scale reduces liquidity deployed into the economy and may concentrate market power among firms able to buy assets outright. It also intensifies scrutiny of succession planning at Berkshire: the capital allocation choices of Buffett's eventual successor will materially affect Berkshire's trajectory, given the scale of resources involved.
The decline in operating earnings at Berkshire Hathaway Energy and the insurance investment arm highlights the conglomerate's sensitivity to sector-specific cycles even as aggregate earnings rise. Energy earnings can fluctuate with commodity prices and regulated utility returns, while investment-related income in insurance businesses is affected by interest rates, underwriting results and realized gains.
Berkshire's latest quarter therefore serves as a distilled lesson in modern capital management: ample liquidity offers optionality, but it also compels clear strategy. With Buffett two quarters from the end of his CEO run, shareholders will be watching closely to see whether the company converts its unprecedented cash position into transformative deals or continues to sit on one of corporate America's largest war chests.
