Berkshire Hathaway Holds Record $382B Cash Amid Market Caution

Warren Buffett is adopting a cautious investment approach in 2025, holding a record cash pile of nearly $382 billion at Berkshire Hathaway, which exceeds the market capitalization of all but 30 public companies. This cash accumulation reflects Buffett's view that the market is overpriced and his preference to wait for better value opportunities rather than chase high stock prices. Berkshire has been a net seller of stocks for 11 consecutive quarters, notably reducing stakes in Apple and Bank of America, while making a significant acquisition of Occidental Petroleum's petrochemical unit. As Buffett prepares to retire, passing leadership to Greg Abel, investors are watching to see how the company performs without him, though Berkshire's earnings remain strong due in part to increased insurance underwriting. Despite selling many holdings, Buffett maintains a substantial, decades-long position in Coca-Cola, reflecting his strategy of holding businesses with durable competitive advantages indefinitely. Overall, Buffett's strategy underscores his emphasis on value investing and cautious capital deployment amid a heated market environment.