Kinda feels like we’re watching a high-stakes game of poker where one player just keeps folding every hand but somehow has all the chips. That’s basically what’s happening with Warren Buffett and the Berkshire Hathaway recent cash allocation. As we roll into early 2026, the numbers are frankly getting a bit ridiculous.
At the end of Q3 2025, Berkshire’s cash pile hit a record-shattering $381.7 billion. To put that in perspective, that’s more than the GDP of entire countries like Denmark or Romania. While most of the market has been chasing AI hype and record highs, the Oracle of Omaha has been quietly—and then not so quietly—stepping back. He isn't just "holding" cash; he’s actively selling off the crown jewels to build a fortress of liquidity.
The Great Apple Exit and the Bank of America Trim
Honestly, the most shocking part of the Berkshire Hathaway recent cash allocation strategy hasn't been what they’re buying, but what they’ve ditched. For years, Buffett called Apple one of the "four pillars" of Berkshire. It was the permanent holding. Until it wasn't.
In 2024 and throughout 2025, Berkshire hacked away at its Apple stake with a machete. They sold off roughly 74% of their Apple shares over a two-year period ending late 2025. That left them with about 238 million shares. Imagine walking away from $50 billion in potential gains just to have the cash instead. That’s what happened because Apple’s price kept climbing after he sold. But Buffett doesn't seem to care. He’s looking at the tax bill—hinting that he’d rather pay 21% capital gains tax now than risk a much higher rate under future government budgets.
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Then there’s Bank of America.
- He sold for 12 straight days at one point in 2024.
- By late 2025, the stake was reduced by about 45%.
- He’s essentially removed the "overweight" risk that used to define the portfolio.
It’s a massive shift in psychology. You’ve got a guy who famously said his favorite holding period is "forever," and now he's dumping the very stocks he praised as recently as two years ago.
Why 5.4% is Better Than a Risky Stock
Most people get the Berkshire Hathaway recent cash allocation wrong by thinking the money is just sitting under a mattress. It’s not. Most of that $382 billion is parked in short-term U.S. Treasury bills.
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With yields hovering around 5.4% for much of 2025, Berkshire has been printing money without taking a single ounce of market risk. We’re talking about roughly $20 billion a year in pure interest income. Why would you gamble on a tech company with a P/E ratio of 35 when the U.S. government will pay you $20 billion just to wait for a better deal?
It’s the ultimate "patience" play. Buffett has often said that "the stock market is a device for transferring money from the impatient to the patient." He’s currently the most patient man on Earth.
The New Guard: Greg Abel and the OxyChem Deal
While the headlines focus on the selling, there was one massive move that signaled where the "new" Berkshire is headed. Right before Buffett retired at the end of 2025, Berkshire closed a $9.7 billion deal to buy OxyChem from Occidental Petroleum.
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This is classic Berkshire.
They didn’t buy a flashy software company. They bought a petrochemical giant that produces caustic soda and PVC. It’s boring, it’s industrial, and it’s a cash-flow machine. Greg Abel, who officially took over the CEO seat on January 1, 2026, was heavily involved in this. It shows that even with a change at the top, the DNA of the Berkshire Hathaway recent cash allocation remains the same: buy the plumbing of the economy when no one else is looking.
Interestingly, they also dipped their toes into some newer waters. They started a position in Alphabet (Google) and added to Chubb, the insurance giant. It’s a bit of a barbell strategy—massive safety in cash, while picking up "reasonable" value in dominant market leaders.
What Does This Mean for Your Portfolio?
If you’re looking at your own brokerage account and wondering why you’re 100% in equities while the smartest investor in history is 40% in cash, it’s time for a reality check.
- Valuations Matter Again: The S&P 500's forward P/E has been stretched. Berkshire is telling us they don't see many bargains.
- The "Elephant Gun" is Loaded: With nearly $400 billion, Berkshire could buy Boeing, FedEx, and Ford all at once in a market crash. They are waiting for blood in the streets.
- Tax Efficiency is Key: Buffett’s move to sell Apple suggests he’s worried about future tax hikes. If you have massive unrealized gains, it might be worth looking at your tax exposure before 2027.
Actionable Next Steps
To align your strategy with the current Berkshire Hathaway recent cash allocation logic, consider these moves:
- Review your concentration risk: If one stock makes up more than 20% of your portfolio (like Apple did for Berkshire), consider if you’re comfortable with that exposure in a high-valuation environment.
- Don't fear the "sidelines": If you can get 4-5% on a high-yield savings account or short-term Treasuries, that’s not "wasted" money. It’s dry powder.
- Watch the "Abel Era" filings: The next 13F filing in February 2026 will be the first glimpse of how Greg Abel manages the portfolio without Buffett at the helm. Watch if the selling continues or if the "elephant gun" finally fires.
The 2026 landscape for Berkshire is no longer about growth at any cost. It’s about survival and readiness for the next big dislocation. If history is any guide, when Buffett (and now Abel) has this much cash, someone is eventually going to get a very expensive phone call.