Berkshire Hathaway’s cash reserves reached a record $397 billion at the end of the first quarter of 2026. The company added approximately $24 billion to its liquid reserves as a net seller of stocks. Leadership maintains this cautious stance due to a lack of attractive investment opportunities at current valuations.
Warren Buffett stated that recent market pullbacks were insufficient to justify large-scale capital deployment. The Buffett Indicator currently sits at a historically high level of 230%. This metric compares total stock market capitalization to GDP to identify potential overvaluation.
CEO Greg Abel oversaw a nearly 18% increase in first-quarter operating earnings. The conglomerate made a significant investment in Alphabet during the period. Berkshire Hathaway also completed its first share repurchases since May 2024.