Berkshire Hathaway Inc. BRK chief Warren Buffett, has put to rest rumors that he is accumulating a substantial cash reserve for his successor, Greg Abel.
What Happened: Speaking at the annual shareholder meet on Saturday, Buffett denied the notion that he was holding back on investments to give Abel a chance to shine.
“I wouldn’t do anything nearly so noble as to withhold investing myself just so Greg could look good,” he humorously commented, prompting laughter from the audience at Berkshire’s annual shareholder meeting.
Berkshire Hathaway’s cash reserve escalated to a record $348 billion in the first quarter of 2025, partially due to the sale of two-thirds of its Apple position in the previous year. Despite this, Buffett had words of praise for Apple CEO Tim Cook, who was in attendance at the meeting.
Buffett expressed his readiness to invest $20 billion, or even $100 billion, given the right opportunity. He also voiced his preference for having enough bargains to maintain Berkshire’s reserve at $50 billion, but described consistent investment to decrease the cash pile as the “dumbest thing in the world”.
The billionaire investor also suggested that he may have been overly active in the market, referring to his late business partner, Charlie Munger’s view that he did “too many things”.
Why It Matters: The speculation about Buffett’s cash reserve strategy has been a topic of interest among investors and market watchers.
Buffett’s denial of these rumors and his comments about investment strategies provide insight into his approach to managing Berkshire’s vast resources. His willingness to invest large sums, given the right opportunity, also underscores his commitment to growth and value creation.
However, his remarks about the potential pitfalls of consistent investment to reduce cash reserves highlight his cautious approach to financial management.
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