The Wall Street Journal writes "The $358 Billion Question for the New CEO of Berkshire Hathaway" The piece explains, "Greg Abel's time has come, and there's a $358 billion question on investors' minds: What will the new chief executive of Berkshire Hathaway do with all of that cash? As Warren Buffett's handpicked successor, Abel faces several challenges as he takes the reins today.... The most pressing issue is how to deploy Berkshire's record cash pile. The company has been a net seller of stocks for 12 straight quarters.... The resulting buildup of cash is a problem -- though perhaps a good one, as far as problems go -- that leaves Abel with both a menu of options and scrutiny from shareholders." The article states, "Abel declined to comment for this article. At the 2025 annual meeting in May, he said the cash pile is an 'enormous asset' that gives Berkshire a cushion if a market downturn occurs.... Buffett has long prided himself on maintaining a strong balance sheet with plenty saved up for a rainy day. During the financial crisis, he famously used Berkshire's financial strength to throw lifelines to companies including Goldman Sachs and General Electric. He has been waiting for other big opportunities. At the 2017 annual meeting, Buffett said: 'There's no way I can come back here three years from now and tell you that we hold $150 billion or so in cash or more, and we think we're doing something brilliant by doing it.' The cash pile kept growing. Berkshire's cash and equivalents increased to $358 billion by the end of September, after accounting for a payable for purchasing some short-term government debt. The risk to holding so much cash is that the return Berkshire can receive on such holdings could fall as the Federal Reserve lowers interest rates, some analysts have warned. On the other hand, they say, the cash is a protective armor for Berkshire's balance sheet."
