How rich is Buffett? Enough to buy 470+ S&P-500 companies
What's the story
Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, now has a jaw-dropping $334 billion in cash and US treasury bills. The massive sum puts him in a position to buy any of the bottom 476 firms on the S&P 500 by market cap. Tuesday's close saw AbbVie Inc ranked as the 24th biggest company on the S&P 500, with a market cap of $312 billion. This is less than Buffett's money pile.
Strategic moves
Buffett's cash accumulation
Buffett has been strategically hoarding cash since 2024, as Wall Street indices hit new heights. The move involved selling shares of his major holdings, Apple and Bank of America. According to Berkshire Hathaway's filings, Buffett sold almost $80 billion worth of Apple's shares in 2024 and over $10 billion worth of Bank of America stocks.
Investment philosophy
Rationale for cash reserves
Buffett has said that sometimes holding cash is the only option when buying opportunities are unappealing. "Often, nothing looks compelling; very infrequently we find ourselves knee-deep in opportunities," he said. Even with so much cash, Buffett assured investors that most of Berkshire's money is still in stocks, especially US stocks. He reiterated his commitment to this strategy by saying, "Berkshire will never prefer owning cash-like assets over owning good businesses."
Market performance
Buffett's cash strategy pays off in 2025
Buffett's cash-holding strategy has paid off as Berkshire Hathaway's stock has increased more than 17% in 2025, while the S&P 500 has fallen 8%. US stocks posted modest losses on Tuesday as investors assessed the latest first-quarter earnings reports and grappled with recent market volatility.