Berkshire Hathaway's Cash Hits $381.7B, Predicts First Dividend in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 02 2026
0mins
Should l Buy BRK.A?
Source: NASDAQ.COM
- Record Cash Position: Berkshire Hathaway's cash reserves reached a historic high of $381.7 billion by the end of Q3, reflecting the company's cautious capital allocation strategy while providing a solid foundation for future investments and potential dividends.
- Rising Dividend Expectations: Analysts predict that with increasing cash reserves and falling interest rates, Berkshire may initiate its first dividend payment by the end of 2026, marking the company's first dividend since 1967, which could attract more investor interest.
- Shift in Tech Investment: Under new CEO Greg Abel, Berkshire is expected to increase its investments in tech stocks in 2026, particularly as the technology sector comprises 35% of the S&P 500, seizing investment opportunities in the AI era.
- Strategic Investment Opportunities: Although Berkshire has historically been cautious about tech stocks, its $4.9 billion investment in Alphabet indicates a strategic shift, with potential future focus on more attractively valued tech companies like Meta Platforms.
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Analyst Views on BRK.A
Wall Street analysts forecast BRK.A stock price to rise
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Current: 747960.000
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Current: 747960.000
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About BRK.A
Berkshire Hathaway Inc. and its subsidiaries are engaged in diverse business activities, including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services and retailing. Its segments include Insurance, Burlington Northern Santa Fe (BNSF), Berkshire Hathaway Energy (BHE), Pilot Travel Centers (Pilot), Manufacturing, McLane Company (McLane), and Service and retailing. The Insurance segment includes GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group. The BNSF segment includes the operation of railroad systems in North America. BHE segment offers regulated electric and gas utilities and real estate brokerage activities. Manufacturing segment manufacturers various products, such as industrial, consumer and building products. The McLane segment is engaged in wholesale distribution of groceries and non-food items. The Pilot segment is an operator of travel centers in North America and a marketer of wholesale fuel.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Coca-Cola's Performance: Coca-Cola remains a strong dividend stock despite criticisms regarding its valuation, with a solid earnings report and a history of consistent dividend increases, making it attractive for long-term investors.
Visa's Market Position: Visa is well-positioned in the credit card landscape, benefiting from minimal exposure to interest rate fluctuations and strong revenue generation through transaction fees, which could lead to growth in the coming year.
See More
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- Leadership Transition: Warren Buffett officially retired on December 31, 2023, concluding a 60-year tenure as CEO of Berkshire Hathaway, during which the company achieved a compounded annual growth rate of 20%, significantly outperforming the S&P 500's 10%.
- Investment Philosophy Continuation: New CEO Greg Abel has committed to maintaining Buffett's capital allocation and investment strategies, ensuring that the company's future investment decisions will still reflect Buffett's successful principles.
- Shareholder Communication Mechanism: Although Buffett is no longer CEO, he will remain involved as chairman and communicate with investors annually through a Thanksgiving letter, preserving the legacy of his investment wisdom.
- Future Outlook: In early 2026, Buffett's investment decisions will still be disclosed through 13F filings, allowing investors to continue drawing insights from his long-term investment strategies for potential gains.
See More
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- Leadership Transition: Warren Buffett officially retired on December 31, ending a 60-year tenure as CEO of Berkshire Hathaway, during which the company achieved a compounded annual growth rate of approximately 20%, significantly outperforming the S&P 500's 10%.
- Investment Principles Continuation: Although Buffett will no longer directly manage investment decisions, his steadfast principles, such as seeking quality companies with competitive advantages, will continue to influence future investment strategies, ensuring investors benefit going forward.
- New CEO Commitment: Incoming CEO Greg Abel has pledged to maintain the same capital allocation and strategy, with Buffett stating he will not sell any of his Berkshire shares, demonstrating trust and support for Abel's leadership.
- Future Outlook: Buffett will remain involved as chairman and plans to communicate with investors through an annual Thanksgiving letter, ensuring that his investment wisdom continues to guide investors in 2026 and beyond.
See More
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- Berkshire Hathaway Holdings: The foundation owns about 21.8 million shares of Berkshire Hathaway, valued at approximately $10.9 billion, reflecting Gates' long-term partnership with Warren Buffett and trust in the company.
- WM Investment Proportion: WM accounts for 16.7% of the foundation's investment portfolio, with its strong market position and stable revenue growth making it a key component of Gates' investment strategy, despite the company's traditional business model.
- Canadian National Railway Investment: Canadian National Railway comprises 13.6% of the foundation's portfolio, with its competitive advantages in the transportation sector and stable cash flow making it an ideal long-term investment, even though industry growth is slow.
See More
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- Wealth Donation Plan: Bill Gates intends to donate nearly all of his wealth through the Gates Foundation over the next 20 years, with an estimated total of $38 billion, significantly impacting his personal wealth and the sustainability of his charitable efforts.
- Portfolio Structure: The Gates Foundation's trust fund currently holds approximately $38 billion in publicly traded stocks, with 59% invested in three major companies, reflecting a preference for value stocks aimed at achieving stable long-term returns.
- Buffett's Influence: The Gates Foundation receives annual donations from Berkshire Hathaway, with the latest being 9.4 million Class B shares, and currently holds Berkshire stock valued at around $10.9 billion, showcasing Buffett's profound influence on the foundation's investment strategy.
- Industry Leadership: The foundation's investment strategy includes stakes in industry leaders like WM and Canadian National Railway, which possess strong competitive moats in their respective fields, expected to provide stable cash flow and long-term growth potential for the foundation.
See More
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- Leadership Transition: Warren Buffett officially hands over the CEO position to Greg Abel, marking one of the most significant changes in Berkshire Hathaway's history; although Abel has worked closely with Buffett, investor concerns about the future remain prevalent.
- Cash Reserve Advantage: As of Q3 2025, Berkshire Hathaway holds a staggering $381 billion in cash and short-term investments, providing new CEO Abel with a substantial financial cushion that could play a crucial role in future acquisitions.
- Acquisition Potential: Abel's cash reserves not only equip him to withstand potential missteps but also position him to seize opportunities to acquire other companies at discounted prices during economic downturns, thereby enhancing the company's market standing.
- Diversification Challenges: While Abel may take a more active role in the day-to-day operations of subsidiaries, Berkshire's diversified business model could face new challenges, prompting investors to reassess their reasons for holding the stock.
See More
