Berkshire Hathaway Hits Record $397.4 Billion Cash Reserve in First Earnings Report Without Buffett

TLDR:

• Berkshire Hathaway cash pile hit a record $397.4 billion, surpassing the GDP of several nations.

• At 5% Treasury rates, Berkshire earns an estimated $20 billion annually by holding cash reserves.

• Greg Abel’s first report showed operating earnings up 18% and net income doubling to $10.1 billion.

• Berkshire’s stock fell 11.19% over the past year despite strong earnings as investor uncertainty grows.
  

Berkshire Hathaway’s cash reserves reached a record $397.4 billion in its latest quarterly report. This marks the first earnings release without Warren Buffett at the helm in 60 years.

New CEO Greg Abel oversaw operating earnings rise 18% to $11.35 billion. Net income more than doubled to $10.1 billion from $4.6 billion a year ago. Investors are now watching closely to see how Abel deploys the massive cash pile.

Record Cash Reserves Generate Billions in Passive Income

Berkshire Hathaway’s $397.4 billion cash pile is larger than the GDP of Portugal, Finland, and New Zealand combined.

At current US Treasury rates of around 5%, the company earns roughly $20 billion annually by simply holding cash. That figure alone rivals the annual profits of many major global corporations.

To put the scale in perspective, the US Treasury’s operating cash balance regularly sits below $800 billion. Berkshire is therefore holding nearly half of what the US government keeps in its own account. This level of liquidity is unprecedented for a private conglomerate of any kind.

As noted by financial commentator Bull Theory on X, the company is “making $20 billion a year just by doing nothing.”

However, that passive income also reflects Buffett’s long-standing caution about overvalued markets. Abel has inherited both the strength and the pressure that comes with it.

Greg Abel’s First Report Shows Growth Amid Leadership Transition

Greg Abel’s first quarterly report as effective CEO showed strong financial results across the board. Operating earnings climbed 18% to $11.35 billion, while net income doubled year-over-year. These numbers confirm that Berkshire’s core business operations remain healthy under new leadership.

Moreover, Berkshire continued its pattern of being a net seller of equities. The company offloaded $24.1 billion in stock while purchasing only $16 billion during the same period. This suggests Abel is maintaining Buffett’s conservative approach to market conditions for now.

Despite the strong results, Berkshire’s stock has dropped 11.19% over the past year. In contrast, the S&P 500 gained 29.5% during the same period.

Buffett turned a failing textile company into a $1 trillion conglomerate over 60 years, with Berkshire’s stock gaining 6,100,000% against the S&P 500’s 39,000%. Investors appear to be waiting for a clearer signal on how Abel will eventually put the $397 billion to work.

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