Berkshire Hathaway now has $397.4B in cash and T‑bills, 59% of its investable portfolio, after 14 straight quarters of net equity selling under new CEO Greg Abel.

The Buffett Indicator has hit a record of 232%, while the Shiller P/E has risen to 41.33%, signaling a potentially overvalued market. Berkshire’s core businesses, especially its insurance arm, face higher claims and lower premiums, prompting a cautious stance.

Despite a large stake in Apple and a $30B investment in Alphabet, Berkshire’s tech exposure remains limited, reflecting its historic wariness of tech during bull runs. The company’s insurance division accounts for 28% of revenue and 48% of pre‑tax earnings, yet rising costs from extreme weather, tariffs, and expensive vehicle parts strain profitability.

Buffett’s exit as CEO has lifted the “Buffett Premium,” contributing to a decline in share price. Without his mystique, Abel must prove he can replicate Buffett’s opportunistic buying. Until a market correction hits, Berkshire’s vast cash pile could prove a strategic advantage.