Additional Coverage:
- Warren Buffett says he isn’t stockpiling billions for Greg Abel to spend: ‘I wouldn’t do anything nearly so noble’ (businessinsider.com)
OMAHA, Neb. — Berkshire Hathaway’s colossal cash reserves have been a hot topic of speculation, with many wondering why Warren Buffett has amassed such a fortune. At Berkshire’s annual shareholder meeting on Saturday, the Oracle of Omaha put those speculations to rest – with a characteristic touch of humor.
Buffett dismissed the notion that the massive cash pile, exceeding $300 billion in 2024 and hitting a record $348 billion in the first quarter of 2025, was meant as a generous gift for his successor, Greg Abel. “I wouldn’t do anything nearly so noble as to withhold investing myself just so Greg could look good,” he joked, drawing laughter from the crowd.
The surge in cash reserves is largely due to Berkshire’s sale of a significant portion of its Apple stock last year. While praising Apple CEO Tim Cook, who was in attendance at the meeting, Buffett reiterated his commitment to value investing. He stated his willingness to spend substantial sums, even up to $100 billion, if the right long-term opportunity presented itself.
However, high valuations across the market have made finding such opportunities challenging. Buffett admitted he’d prefer a smaller cash reserve, ideally around $50 billion.
But he emphasized the folly of forcing investments just to reduce the cash pile, stressing that quality opportunities are rare. He even hinted that, in retrospect, he might have been too active in the market throughout his career, echoing the sentiments of his late business partner, Charlie Munger.