Warren Buffett's Money Mountain

Just when you thought Warren Buffett couldn’t pile up more cash, he’s got a new record: $325 billion. Meanwhile, I'm over here figuring out how to stretch my paycheck.

Berkshire Hathaway’s cash reserves hit insane levels in Q3 2024. What’s he waiting for? A once-in-a-lifetime deal? Or maybe he just likes watching his cash grow. Let’s dig into how he built this “money mountain” and what it could mean for Berkshire’s next moves.

Building the Cash Mountain

Buffett’s cash pile didn’t happen by accident. A big part of it? Trimming Berkshire’s Apple stake.

  • Apple Moves: Back in 2016, Buffett jumped in when Apple was trading at $25 a share. Fast-forward, and he’s been selling some of that stake, bringing Berkshire’s Apple holdings down to $70 billion from a peak of $178 billion. That’s a lot of cash freed up.
  • Cash Growth: That Apple sale rocketed Berkshire’s cash to record highs.

Berkshire's cash has grown 123% since Q3 2020

Berkshire vs. Big Tech

Sure, tech giants have a lot of cash. But Berkshire? They’re in a league of their own.

  • Big Tech Comparisons: Apple holds $65.2 billion in cash. Microsoft? $78.4 billion. Even Amazon and Google with $88.1 billion and $93.2 billion look small next to Berkshire’s $325 billion. Buffett’s stockpiling cash like there’s no tomorrow.
  • Why This Matters: This isn’t just a flex. It’s a strategy. Buffett isn’t jumping into overpriced markets. Instead, he’s biding his time, waiting for deals to open up.
Berkshire's cash is more than the reserves of Apple, Microsoft, Amazon, and Google combined ($324B)

Betting on Treasury Bills

With all that cash, you’d think Buffett would be throwing it around. But no—he’s playing it safe with U.S. Treasury bills.

Why? Liquidity. Treasury bills keep Berkshire’s cash easily accessible, so Buffett can pounce on the right deal when it comes.

Then there’s stability. Treasury bills are low-risk, which fits perfectly with Buffett’s cautious vibe in today’s unpredictable market.

A Few Key Takeaways

  • Big Cash, Big Plans: Berkshire’s cash stack is at $325 billion, boosted by Apple sales.
  • More Cash Than Big Tech: Compared to tech giants, Berkshire’s cash pile is next-level.
  • Playing It Safe: Buffett’s sticking to Treasury bills, holding out for the right moment to strike
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