In some quiet corner of Omaha, Nebraska, there sits the largest private collection of Treasury bills ever assembled in the history of capitalism.



If it were physical, and in the highest denomination ever made to the public ($10,000 bill), it would weigh nearly 84,000 pounds – requiring a logistic operation on par with the national mint.



However, for the last four decades, T-bills have been stored in a book-entry system, which is lucky for Greg Abel, Berkshire Hathaway's (NYSE:BRK) new CEO. They're merely a digital entry on the Federal Reserve's Fedwire system.



Yet avoiding the logistics still doesn't free Abel from the key question: what to do with the money?



<h3>The Cash Fortress</h3>



Berkshire is still selling more stocks than it buys. According to Kingswell, the conglomerate has now been a net seller for 14 consecutive quarters, even as it sits on a concentrated portfolio dominated by Apple, American Express, Bank of America, Coca-Cola, and Chevron.



Berkshire ended the first quarter with a record $380.2 billion cash position, towering over its $288 billion equity portfolio. That's a strong message from a company defined by stock picking.



At a recent annual meeting, Warren Buffett warned about the market becoming a &#34;church with a casino attached,&#34; and Berkshire's behavior reflects that concern. Rather than stretch for deals, Abel is preserving liquidity for what he views as inevitable market dislocations.



When panic arrives, Berkshire expects to be one of the few institutions capable of writing multibillion-dollar checks, just like it did in 2008.



The restraint extends to Berkshire's own shares. Investors anticipated aggressive buybacks after Abel announced the restart of repurchases earlier this year. Yet, Berkshire bought back only $235 million. For a trillion-dollar conglomerate, that figure barely registers.



<h3>The Successor's Report Card</h3>



So far, Abel has passed his first quarter with flying colors. Operating earnings climbed to $11.3 billion, up 17.7% from a year earlier. Adjusted for currency fluctuations, growth was still a solid 7.2%.



Insurance, his close specialty, performed well. Underwriting profit reached $1.7 billion, while float — effectively investable capital generated from insurance operations — rose to $176.9 billion. The combined ratio across insurance operations came in at a sparkling 87.8%, helped by a catastrophe-free quarter.



There are still weak spots. BNSF Railway increased earnings and improved efficiency, posting an operating margin of 34.4%. But that performance trails rivals, including Union Pacific at 39.5%.



<h3>No Free Lunch for Hyperscalers</h3>



Utilities across the U.S. are racing to accommodate Meta, Google, and Microsoft, whose energy needs are increasingly akin to those of industrial economies. Abel wants Berkshire involved, but refuses to let ordinary customers absorb the risk.



Under what might be called the Abel Doctrine, hyperscalers must pay the full cost of new generation, transmission, and ongoing operations tied to their facilities. Berkshire will build the infrastructure, but the tech giants will foot the bill.



It is hardball capitalism wrapped in utility regulation. By refusing to socialize data-center costs across households and small businesses, Abel is drawing a line between growth and subsidy. 



If it happens, Berkshire gets exposure to the AI buildout without compromising balance-sheet discipline or political goodwill.



Image: Shutterstock

BRK.A

BRK.B

Berkshire Hathaway, under CEO Greg Abel, maintains a record cash position of $380.2 billion while being a net seller of stocks for 14 quarters. The company is cautious in deal-making, preserving liquidity for future market dislocations. Operating earnings rose 17.7% to $11.3 billion, with strong insurance performance. Abel's strategy includes charging tech giants for infrastructure costs related to data centers, ensuring Berkshire's growth without risking its balance sheet.

- Berkshire Hathaway, led by CEO Greg Abel, holds the largest private collection of Treasury bills, reaching a record cash position of $380.2 billion.  
- Abel is cautious about market conditions, refraining from aggressive stock buybacks and opting to preserve liquidity for potential future opportunities.  
- The company maintains a strict policy, ensuring that technology giants like Meta and Google cover the full costs associated with expanding energy needs, reflecting a balance between growth and financial discipline.

benzinga_article

Berkshire Hathaway

Berkshire Hathaway B

Apple

American Express

Bank of America

Coca Cola

Chevron

Union Pacific

Meta Platforms

Alphabet

Alphabet - C

Microsoft

BANK OF AMERICA CORPORATION DEP SHS REP 1/1000TH INT NON CUM PFD QQ

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200TH PRF SERIES '5'

BANK OF AMERICA CORPORATION 7.25% NON-CUM PERP CONV PFD SER L

BANK OF AMERICA CORPORATION 5.875%NON CUM DEP SHS REP1/1000TH SER HH

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200TH PRF SERIES '2'

BANK OF AMERICA CORPORATION 5% DEP SHS REPR 1/1000TH NON CUM PFD LL

BANK OF AMERICA CORPORATION DEP SHARES REP 1/1000TH PERP PFD SER 'E'

BANK OF AMERICA CORPORATION INCOME CAPITAL OBLIG NTS DUE 15/12/2066

BANK OF AMERICA CORPORATION 4.375% DP SH RP 1/1000TH IN NON CU PF NN

BANK OF AMERICA CORPORATION DEP SH REP 1/1200TH PRF SER 1 USD25

BANK OF AMERICA CORPORATION 5.375%DEP SHS REP 1/1000TH NON CUM SR KK

BANK OF AMERICA CORPORATION 6%NON CUM DEP SHS EACH REP 1/1000 SER GG

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200 PFD SER 4 USD25

BANK OF AMERICA CORPORATION DEP SHS REP 1/1000TH NON CUM PFD SER SS

BANK OF AMERICA CORPORATION 4.125%DEP SH REP 1/1000 PFD SER PP USD25

Bank of America Corp

Berkshire's Cash Pile Might Go To Data Centers, But On Its Own Terms