Berkshire Hathaway’s cash reserves reached a record approximately $397 billion at the end of the most recent quarter, up from about $348 billion a year prior and significantly up from just $129 billion three years ago. This surge in cash is attributed to the company selling over $150 billion in equities since late 2022 while interest from Treasury bills continues to generate substantial income. New CEO Greg Abel now faces the critical decision of how and where to invest this capital, especially with a particular interest in expanding into artificial intelligence.
One potential investment target is Taiwan Semiconductor Manufacturing (TSM), known for its critical role in producing advanced AI chips. Abel previously expressed willingness to take on risks that his predecessor Warren Buffett avoided, suggesting a renewed interest in companies like TSM that are central to technological advancements. However, concerns regarding geopolitical risks remain, which could influence investment strategies moving forward as the company transitions to a post-Buffett leadership era.
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