"Tomorrow marks Warren Buffett's final day as CEO of Berkshire Hathaway ( NYSE:BRK-A)( NYSE:BRK-B), ending a tenure spanning six decades that turned a struggling textile company into a $1 trillion conglomerate. At age 95, Buffett will step down, with Greg Abel taking over as CEO on Jan. 1, while Buffett remains chairman. As he exits daily investment decisions, Buffett leaves behind a record cash pile of approximately $382 billion, mostly in short-term U.S. Treasury bills."
"Berkshire Hathaway has been a net seller of stocks for 12 consecutive quarters, including significant reductions in its Apple ( NASDAQ:AAPL) stake - once its largest holding at around 50% of the portfolio, but today it accounts for just over one-fifth of the total. He has also trimmed or sold off other holdings as well. These sales have driven Berkshire's cash reserve to new highs, as Buffett has not even been buying back his own stock in 2025 despite the company's strong operating earnings."
"One explanation is the appeal of risk-free returns. Much of Buffett's cash is invested in short-term Treasury bills yielding around 3.6% to 4%, providing reliable income without equity risk. Analysts note that Buffett prefers these safe yields over deploying capital into stocks at current elevated valuations, where expected returns may not exceed this risk-free rate after adjusting for inflation and volatility."
Warren Buffett will step down as CEO of Berkshire Hathaway at age 95, with Greg Abel becoming CEO on Jan. 1 while Buffett remains chairman. Buffett's six-decade tenure transformed a struggling textile company into a $1 trillion conglomerate. Berkshire holds about $382 billion in cash, largely in short-term U.S. Treasury bills. The company has been a net seller of stocks for 12 consecutive quarters, including major reductions in its Apple stake, and has not repurchased its own shares in 2025 despite strong operating earnings. The cash allocation reflects a preference for risk-free Treasury yields amid elevated equity valuations and preserves flexibility for acquisitions or opportunistic buybacks.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]