[Alpha Biz= Kim Jisun] Legendary investor Warren Buffett has stepped away from active leadership at Berkshire Hathaway, and under new CEO Greg Abel, the company has ramped up its cash reserves to a record level.

According to Berkshire’s latest earnings report released on May 2 (local time), cash and cash equivalents—including short-term U.S. Treasuries—rose to $397 billion as of the end of March, up from $380 billion at the end of last year.

Net income for the quarter more than doubled to $10.11 billion from $4.6 billion a year earlier, driven by improved performance in its insurance and railroad businesses. The results mark the first full-quarter performance under Abel’s leadership.

Berkshire also continued to be a net seller of equities, offloading $24.1 billion worth of stocks during the quarter. The move suggests Abel is maintaining Buffett’s long-standing value investing approach—holding cash when markets appear overvalued and waiting for better opportunities.

Amid ongoing concerns about stretched valuations in the U.S. stock market, Berkshire’s growing cash pile reflects a cautious stance.

Notably, the company resumed share buybacks in Q1 after pausing them for six consecutive quarters. Berkshire has traditionally favored buybacks over dividends as its primary shareholder return strategy, executing repurchases only when shares trade below intrinsic value and sufficient cash reserves remain.

Since Abel took over, Berkshire’s stock has declined about 5.9% year-to-date, underperforming the S&P 500, which gained roughly 5% over the same period. The shares have yet to recover to levels seen before Buffett signaled his retirement.

 

 

 

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