Berkshire Hathaway Hits 31% Cash Ratio, Signaling Defensive Strategy
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Record Cash Reserves: As of Q3 2025, Berkshire Hathaway's cash and Treasury holdings reached $381.7 billion, accounting for 31% of total assets, marking the highest level in over two decades and indicating a defensive strategy during a leadership transition.
- Leadership Transition Impact: With Warren Buffett stepping down as CEO on December 31, 2025, and handing day-to-day control to Greg Abel, the timing suggests a deliberate effort to pass on a fortress balance sheet amid rising market uncertainty.
- Trend of Equity Reductions: Berkshire has been a net seller of equities for eight consecutive quarters, significantly reducing exposure to major holdings like Apple and Bank of America, signaling management's view that current valuations are unattractive and opting to hold cash for better investment opportunities.
- Future Investment Flexibility: Historically, elevated cash levels at Berkshire have preceded major acquisitions or aggressive investments, and the current 31% cash allocation reflects the company's patience and flexibility in a volatile market with high valuations.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
