Warren Buffett's Berkshire Hathaway is entering a new phase. As the famous "Oracle of Omaha" retires at age 95, the conglomerate now holds a record-breaking $382 billion in cash. According to Barchart, this amount is enough to buy nearly 480 companies in the S&P 500 index.
The massive cash reserves, coupled with 12 consecutive quarters of net stock sales, have led many to believe Berkshire is preparing for a market downturn. This has also raised questions about whether the new management will be more open to digital assets.
Berkshire Hathaway's cash reserves reached a record high as Warren Buffett retired.
Buffett's retirement on December 31, 2024, marks the end of 60 years of leadership, transforming Berkshire from a struggling textile company into a leading global financial empire.
Currently, the conglomerate manages approximately 200 subsidiaries, including BNSF, GEICO, and Berkshire Hathaway Energy. Berkshire also holds significant stakes in Apple ($65 billion), Coca-Cola ($28 billion), Bank of America ($32 billion), and American Express ($58 billion).
Insurance companies like National Indemnity and GEICO generate a steady stream of insurance revenue, providing Berkshire with substantial funds to invest in stocks and acquisitions. This is a powerful "cash engine" for the conglomerate.
The big question now is: What will Greg Abel, Vice President of Berkshire's Non-Insurance Business, do with this unprecedented amount of cash?
Abel, who rose through the ranks of energy rather than stock market investing, took on the leadership role at a time when interest rates were falling and the opportunity cost of idle cash was increasing.
Many experts believe he may continue Buffett's value investing philosophy, but with this "mountain of cash," Berkshire will have the opportunity to acquire businesses at attractive prices if the market goes down.
“What Berkshire could lose is Buffett’s extensive network of connections. Will the conglomerate still be able to support banks like it did in 2008?” – according to Brian Meredith (UBS), quoted in The Economist .
The crypto investment community is also watching closely. Buffett has long held Bitcoin in low regard, once calling it "double-dose rat poison," and Berkshire has never directly invested in crypto.
However, the investment in Nu Holdings – a digital bank with crypto-related operations in Brazil – suggests that Berkshire may indirectly gain access to this sector under Abel's leadership.
Nu Holdings is one of the standout investments in Berkshire Hathaway's portfolio . After an initial investment of $500 million in 2021 and a subsequent $250 million, the company's stock price has soared, rising by more than 50% in 2025 alone.
Nu Holdings stock performance. Source: TradingViewBerkshire's $382 billion in cash demonstrates caution and presents an opportunity for the crypto market.
This growth follows impressive performance in 2023 and 2024, with stock value increasing by nearly 100% in 2023 and almost 50% in 2024.
“While Buffett has consistently held a negative view of the crypto market, Greg Abel has never explicitly stated his opinion on the asset class. However, he is likely to continue Buffett’s legacy, focusing on businesses that generate tangible cash flow. If there is a change, there must be a clear signal from the new CEO, which hasn’t happened yet,” Juan Pellicer, Head of Research at Sentora, Chia BeInCrypto.
Berkshire's current strategy also reflects caution. Over the past three years, the conglomerate has sold approximately $184 billion worth of shares, making it one of the world's largest net sellers.
Combined with the $382 billion currently held in cash and short-term government bonds, this "reserve fund" helps Berkshire weather market volatility or take advantage of opportunities to acquire assets at bargain prices.
Many in the crypto community may notice a similarity: when large institutions accumulate cash, it's a common sign preceding periods of risk. This also creates opportunities for savvy retail investors.
The Berkshire story is also a great lesson: even the most steadfast value investors prioritize accumulating cash, preparing for periods of market volatility.
Historically, Berkshire has only underperformed the S&P 500 in 20 years since 1965. However, the company's overall returns have far surpassed the market, Medium 19.9% annually compared to the S&P's 10.4%, demonstrating the patience and strength of its long-term investment.
When Buffett retires, the question is whether Abel will dare to try his hand at digital assets while still maintaining his value investing philosophy. If so, the crypto market could gain another powerful institutional ally.
