While others chase growth in a zero-margin world, Berkshire Hathaway is quietly hoarding cash like it’s 2008 all over again. As of March, the company’s reserves hit an all-time high: $347.7 billion in cash, cash equivalents, and T-bills. That’s not just liquidity. That’s an empire on standby.
Warren Buffett — 94, sharp as ever — didn’t mince words at this year’s annual gathering. Markets are chaotic, yes. But panic? Not his style. “Adapt to the world,” he said. Translation: stay liquid, stay patient, wait for the next forced seller.
Behind the calm surface, the numbers tell a story of caution.
- Net earnings fell 64% year-on-year, dragged down by $6.4B in unrealized losses.
- Operating income dropped 14.1%.
- Insurance underwriting plunged nearly 49%, bruised by wildfire damage and rising GEICO claim severity.
Still, Berkshire’s secret weapon — the insurance float — keeps growing. Now near $173B, it provides leverage without interest, repayment, or risk of margin calls. A synthetic capital machine, quietly compounding.
Share buybacks: Suspended in Q1. A notable shift after $2.6B in Q1 2024 and $2.2B in Q4. Buffett sees little value out there, and he’s not paying a premium for his own stock either.
Despite the defensive posture, BRK-A is up 19% YTD, while the S&P 500 is down over 3%. Confidence in conservatism is paying off — at least for now.
On the geopolitical front, Buffett avoided direct references, but criticized tariffs and warned against using trade as a weapon. A message clearly aimed at Washington, without the courtesy of names.
He also hinted at internal shifts, particularly at GEICO, suggesting change is coming. As usual, no timetable. Just pressure building behind closed doors.
Buffett isn’t bearish. He’s waiting. There’s a difference. One is fear. The other is discipline.