Berkshire cash – Berkshire Hathaway’s first-quarter results under Greg Abel showed higher operating earnings and record cash, fueled by stock sales and halted buybacks.
Berkshire Hathaway’s cash pile surged to a new high in the first quarter, underscoring how Greg Abel is managing the company as he settles into the CEO role.
In its latest quarterly reporting. Berkshire said operating earnings rose 17% to $11.3 billion. with growth supported by stronger performance across several major business segments.. Abel. who took over at the start of the year following Warren Buffett’s long tenure. is now steering results in a period where Berkshire is balancing day-to-day momentum with capital preservation.
The headline number is impressive, but the strategy behind it matters: Berkshire’s unusually large cash position gives it room to respond quickly when opportunities emerge or if the economic outlook shifts.
While insurance underwriting profits improved and earnings increased in areas including BNSF Railway. Berkshire Hathaway Energy. and the company’s manufacturing. service. and retail operations. the quarter also included a foreign-exchange gain.. Berkshire’s overall earnings picture therefore reflects both operational strength and financial effects outside its core businesses.
Capital allocation was another key feature of the quarter.. Abel’s team sold a net $8 billion of stocks. buying $15.9 billion of shares while selling $24.1 billion. extending a pattern in which Berkshire has been a net seller of stock for 14 consecutive quarters.. At the same time. Berkshire did not conduct stock buybacks for a seventh straight quarter. although buybacks resumed later in the period in consultation with Buffett.
This combination of net selling and paused repurchases is a big reason cash and Treasury bills reached a record $380 billion (after deducting about $17 billion of payables related to Treasury bills). It also helps explain why Berkshire’s cash position has nearly tripled over the past three years.
For context. Berkshire said its cash pile has grown from roughly $130 billion at the end of 2022 to its current level. a buildup that now places it above the market capitalizations of some large global companies.. Abel also indicated he would not automatically deploy cash in the form of a dividend or new deals solely to put the money to work.
As Abel prepares for his first annual meeting as CEO. the focus now extends beyond quarterly performance to how he will guide Berkshire’s next steps with such a large liquidity buffer.. With the company navigating life after Buffett. investors will be watching whether the current discipline around buybacks and deal-making evolves with clearer confidence in the opportunity set.
Insight at the end: A record cash balance can be a sign of caution, but it can also be a strategic edge. In Berkshire’s case, the question for shareholders is how quickly that liquidity will translate into acquisitions or investments once management identifies the right targets.