What will Berkshire do with $380 billion? Greg Abel speaks after taking over Warren Buffett's biggest cash puzzle

Berkshire Hathaway is sitting on a staggering $380.2 billion (about Rs 31.8 lakh crore) in cash. This became one of the talking points at the conglomerate's annual shareholder meeting in Omaha as investors looked for clues on how the Warren Buffett era will evolve under new chief executive Greg Abel.

For decades, cash on Berkshire's balance sheet was seen as Buffett's insurance against market excesses and a war chest for once-in-a-generation deals. But with Buffett now having stepped aside as CEO after 60 years, that cash pile is Greg Abel’s first major test.

Opening the meeting, Abel made it clear Berkshire's operating philosophy would not change, according to Reuters.


"We have to excel across Berkshire’s many businesses. It’s been our focus and it’ll continue to be our focus," he told shareholders.

Still, the spotlight remained firmly on Berkshire's growing cash reserves, which climbed from $373 billion at the end of 2025 to $380.2 billion in March, even after the company resumed stock buybacks for the first time since May 2024. Berkshire bought back $234 million worth of its own shares during the quarter.

The cash build-up comes even as Berkshire posted stronger first-quarter earnings. Operating profit rose 18% to $11.35 billion, up from $9.64 billion a year ago, helped by stronger insurance underwriting and broad-based gains across businesses. Net income, including investment gains, more than doubled to $10.1 billion.

Berkshire has not made a deal large enough to materially move earnings in nearly a decade. Meanwhile, many of its traditional businesses, from retail to industrial operations, have seen patchy growth, while technology-driven markets continue to dominate investor attention.

Buffett, now 95 and still chairman, briefly appeared at the meeting and offered a public vote of confidence in Abel.
"Greg is doing everything I did and then some," Buffett told shareholders.

Buffett also used the occasion to praise Tim Cook, reminding investors how Berkshire’s original $35 billion investment in Apple had grown to roughly $185 billion before tax. But Apple-like opportunities at that scale are rare today, which is precisely why Berkshire’s cash has become such a market obsession.

Adding to the pressure, Berkshire’s stock has underperformed the S&P 500 since Buffett announced last year that he would step aside, raising expectations that Abel may eventually need to make bolder capital allocation calls.