Warren Buffett's Berkshire Could Buy Almost Any S&P 500 Company With Its $397 Billion Cash Pile, but Keeps Waiting for a Better Price

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Patrick Sanders, The Motley Fool

Sat, August 1, 2026 astatine 5:05 PM CDT 4 min read

You cognize the look "burning a spread successful my pocket?" It's an aged operation for the restless feeling immoderate radical get erstwhile they person other cash. But spending wealth connected a whim is nary mode to invest, and it could pb to atrocious habits that get you successful occupation 1 day.

I deliberation this is simply a occupation Warren Buffett ne'er had. Buffett led Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) for six decades earlier turning the reins implicit to Greg Abel, its caller CEO, astatine the opening of the year. And during his tenure, Buffett built an awesome conglomerate that besides holds an exceptionally ample currency position.

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How large? At the extremity of the archetypal quarter, Berkshire's currency was a whopping $397.4 billion. Put different way, determination are lone 2 twelve companies successful the full S&P 500 with a market capitalization that's greater than Berkshire Hathaway's currency pile.

What are Buffett (who's present Berkshire's president of the board) and Abel waiting for?

Berkshire Hathaway president of the committee Warren Buffett.

Berkshire's absorption wants to walk

In an interrogation with CNBC earlier this year, Buffett said helium would alternatively person the company's wealth moving alternatively than sitting successful an relationship oregon successful Treasury bills. "It's outer circumstances," helium said. "Believe me, if aft we get finished talking, you say, 'I've got a large $100 cardinal caller idea.' I would say, 'Let's talk.'"

In a February missive to shareholders, Abel besides addressed Berkshire's currency hoard. "Many times successful Berkshire's history, immoderate observers person suggested that our important currency presumption signals a retreat from investing. It does not," helium wrote. "We proceed to measure galore opportunities and volition stay diligent and disciplined successful pursuing the close ones for the payment of our owners."

Stocks are excessively costly for Buffett's sensation

The situation facing Berkshire Hathaway -- and investors successful wide -- is that stocks contiguous are historically expensive.

One specified indicator is the Buffett indicator, named for Warren Buffett himself. This indicator measures the full worth of the U.S. banal marketplace and divides it by gross home merchandise (GDP). The effect is simply a measurement of the banal market's size compared to the nation's wide economical output -- a fig Buffett has referred to arsenic "probably the champion azygous measurement of wherever valuations basal astatine immoderate fixed moment."

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