Warren Buffett's successor puts record $400 billion cash pile to work. What's he buying?

As Greg Abel takes on the challenge of succeeding legendary investor Warren Buffett as Berkshire Hathaway's CEO, he has begun putting the company's record cash pile to work, with investments in companies including Google parent Alphabet and others.

Abel took over as CEO of Berkshire Hathaway on January 1 this year. The move comes after Berkshire reported a record cash pile of nearly $400 billion at the end of the first quarter of 2026. Earlier this year, Buffett told CNBC that it was not the ideal environment to deploy Berkshire's record cash hoard. Several market analysts have suggested that the rationale behind this approach could be expectations of a sharper market correction ahead.

Berkshire agreed to buy Alphabet shares worth $10 billion in a private placement last month, according to the Google parent. Berkshire began investing in Alphabet in the third quarter of last year and held $16.6 billion worth of shares as of March 31 this year. The latest investment made Alphabet one of Berkshire's five largest common stock holdings, led by iPhone maker Apple.


Berkshire also recently revealed that it had struck an $8.5 billion deal to acquire Taylor Morrison Home Corporation, a publicly traded US-based homebuilder and community developer. The company's portfolio spans 12 US states and includes entry-level and "resort lifestyle" housing.

Alphabet shares have gained around 16% in 2026 so far, and more than 7% in five days. Taylor Morrison Home shares, meanwhile, jumped over 22% in this year so far. In January, Berkshire paid $9.5 billion in cash for Occidental Petroleum's chemicals business.

It owns dozens of other businesses including Geico ⁠car insurance, the BNSF railroad, energy and industrial companies, and retail businesses such as Dairy Queen and Fruit of the Loom.

Also read: What Warren Buffett learnt from buying his first stock at age of 11 amid World War II

Buffett once regretted not buying Google shares
Notably, Berkshire's growing investment in Google is significant as Buffett had reflected on missed opportunities with the company back in 2017. He had often explained why he avoided buying technology stocks, saying he did not fully understand how these companies made money or whether they would be able to sustain their business models in the future.

Buffett later acknowledged that this decision had cost Berkshire investors significantly. However, his successor appears to be taking the opportunity to ride the artificial intelligence (AI) wave.

This comes as some market analysts raise concerns over rising AI spending by hyperscalers. Jefferies' Global Head of Equity Strategy Chris Wood cautioned that markets may eventually push back against massive AI investments, which he believes could lead to "massive capital destruction".

In his latest 'Greed & Fear' report, Wood highlighted that Microsoft, Meta, Amazon, and Alphabet have issued bonds worth $144 billion so far this year, compared with $83 billion in the entire 2025. Meanwhile, Morgan Stanley noted that clear evidence of AI products generating returns to justify such spending is yet to emerge, even as companies continue to invest billions in AI infrastructure.

(With inputs from agencies)

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