--- title: "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" type: "News" locale: "en" url: "https://longbridge.com/en/news/294590036.md" description: "Berkshire Hathaway holds $397.4 billion in cash, enough to acquire most S&P 500 companies, yet remains patient due to historically high stock valuations. The Buffett indicator stands at 219%, signaling an overvalued market. CEO Greg Abel and Chairman Warren Buffett emphasize discipline, preferring to deploy capital only when prices are attractive, while currently investing in Treasuries and selectively trading stocks like Delta Air Lines and Macy's." datetime: "2026-08-01T22:06:45.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294590036.md) - [en](https://longbridge.com/en/news/294590036.md) - [zh-HK](https://longbridge.com/zh-HK/news/294590036.md) generator: "portal-rs" --- # 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 You know the expression "burning a hole in my pocket?" It's an old phrase for the restless feeling some people get when they have extra cash. But spending money on a whim is no way to invest, and it could lead to bad habits that get you in trouble one day. I think this is a problem Warren Buffett never had. Buffett led **Berkshire Hathaway** (BRKA +0.21%) (BRKB +0.36%) for six decades before turning the reins over to Greg Abel, its new CEO, at the beginning of the year. And during his tenure, Buffett built an impressive conglomerate that also holds an exceptionally large cash position. How large? At the end of the first quarter, Berkshire's cash was a whopping $397.4 billion. Put another way, there are only two dozen companies in the entire **S&P 500** with a *market capitalization* that's greater than Berkshire Hathaway's cash pile. What are Buffett (who's now Berkshire's chairman of the board) and Abel waiting for? ![Berkshire Hathaway chairman of the board Warren Buffett.](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84ODA3NjkvYnVmZmV0dDgtdG1mLTEuanBnJnc9Mzg0MA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Berkshire Hathaway chairman of the board, Warren Buffett. Image source: The Motley Fool. ## Berkshire's management wants to spend In an interview with CNBC earlier this year, Buffett said he would rather have the company's money working rather than sitting in an account or in Treasury bills. "It's external circumstances," he said. "Believe me, if after we get finished talking, you say, 'I've got a great $100 billion new idea.' I would say, 'Let's talk.'" In a February letter to shareholders, Abel also addressed Berkshire's cash hoard. "Many times in Berkshire's history, some observers have suggested that our substantial cash position signals a retreat from investing. It does not," he wrote. "We continue to evaluate many opportunities and will remain patient and disciplined in pursuing the right ones for the benefit of our owners." Expand ![Berkshire Hathaway Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0JSS0IucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NYSE: BRKB Berkshire Hathaway Today's Change (0.36%) $1.86 Current Price $511.54 ### Key Data Points Market Cap $1.1TMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary. Day's Range $506.70 - $513.03 52wk Range $455.19 - $516.85 Volume 3.9M Avg Vol 5M Gross Margin 23.70% ## Stocks are too expensive for Buffett's taste The challenge facing Berkshire Hathaway -- and investors in general -- is that stocks today are historically expensive. One such indicator is the Buffett indicator, named for Warren Buffett himself. This indicator measures the total value of the U.S. stock market and divides it by gross domestic product (GDP). The result is a measurement of the stock market's size compared to the nation's overall economic output -- a number Buffett has referred to as "probably the best single measure of where valuations stand at any given moment." The current ratio stands at 219% -- about 64% above the historical trend. To put the number into perspective, Buffett has said any number over 200% means that the market is "playing with fire." Does that mean that investors should forsake the market entirely right now? Of course not. Buffett and Abel are still putting Berkshire's money to work in Treasuries, but they've not backed out of the market at all. Berkshire's current investment portfolio is valued at $361 billion, and the company under Abel has both sold and bought stock, including opening new positions in **Delta Air Lines** and **Macy's**. Until valuations become more attractive, investors should expect Berkshire to remain patient, disciplined, and ready to deploy its cash when the right opportunity arises. ### Related Stocks - [BRK.A.US](https://longbridge.com/en/quote/BRK.A.US.md) - [BRK.B.US](https://longbridge.com/en/quote/BRK.B.US.md) - [BRKD.US](https://longbridge.com/en/quote/BRKD.US.md) - [BRKU.US](https://longbridge.com/en/quote/BRKU.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [SPY.US](https://longbridge.com/en/quote/SPY.US.md) - [IVV.US](https://longbridge.com/en/quote/IVV.US.md) - [VOO.US](https://longbridge.com/en/quote/VOO.US.md) - [SPLG.US](https://longbridge.com/en/quote/SPLG.US.md) - [SPXL.US](https://longbridge.com/en/quote/SPXL.US.md) - [UPRO.US](https://longbridge.com/en/quote/UPRO.US.md) - [SSO.US](https://longbridge.com/en/quote/SSO.US.md) - [SH.US](https://longbridge.com/en/quote/SH.US.md) - [SPXS.US](https://longbridge.com/en/quote/SPXS.US.md) - [SPXU.US](https://longbridge.com/en/quote/SPXU.US.md) - [SDS.US](https://longbridge.com/en/quote/SDS.US.md) - [SPYI.US](https://longbridge.com/en/quote/SPYI.US.md) - [JEPI.US](https://longbridge.com/en/quote/JEPI.US.md) - [XYLD.US](https://longbridge.com/en/quote/XYLD.US.md) - [BRKC.US](https://longbridge.com/en/quote/BRKC.US.md) - [BRKW.US](https://longbridge.com/en/quote/BRKW.US.md) - [07777.HK](https://longbridge.com/en/quote/07777.HK.md) - [DAL.US](https://longbridge.com/en/quote/DAL.US.md) - [M.US](https://longbridge.com/en/quote/M.US.md) ## Related News & Research - [History Says Berkshire Hathaway Stock Rewards Patience: It Rose in 50 of the Last 61 Years](https://longbridge.com/en/news/303995265.md) - [Warren Buffett’s Blunt Warning to Wall Street Has Reached Deafening Levels. Here’s the 1 Move You Should Make Now.](https://longbridge.com/en/news/303380107.md) - [Meet the Stocks Yielding 65%, 45%, and 41% Annually for Warren Buffett's Berkshire Hathaway](https://longbridge.com/en/news/303200036.md) - [Greg Abel Just Spent $330 Million on This Tech Stock. Here's What It Means for Investors.](https://longbridge.com/en/news/303862703.md) - [LIVE MARKETS-Japan's vanishing T-bill stash could be about to make a comeback](https://longbridge.com/en/news/303607137.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**