Buffett's final adjustment before stepping down: cash holdings approach 400 billion, stock holdings hit a new low

Berkshire Hathaway’s latest quarterly holdings report has been officially disclosed, documenting Warren Buffett’s final investment decisions before stepping down as CEO. The report reveals an unprecedented phenomenon: cash reserves approaching $400 billion, while stock holdings have fallen below $300 billion. This stark contrast reflects Buffett’s cautious attitude toward the current market environment.

Stock Holdings Shrink Significantly, Cash Reserves Hit Record High

In the past quarter, Berkshire Hathaway made unprecedented large adjustments to its stock portfolio. The market value of stock holdings has fallen below $300 billion for the first time, while cash holdings have approached $400 billion. This reversal is extremely rare in Berkshire’s history—over the past 40 to 50 years, such a large cash surplus exceeding stock holdings has been seldom seen.

The logic behind this adjustment is worth noting. When cash reserves far exceed market value of holdings, it usually indicates that investors are waiting for better opportunities or have concerns about current market valuations.

Tech Stock Holdings Diverge, Apple Remains Top

In the portfolio adjustments, technology stocks became the main target. Although Apple continued to hold the top position among Berkshire’s holdings, it was moderately reduced this quarter. In contrast, Amazon experienced more aggressive selling and has essentially exited Berkshire’s core holdings.

As of the end of Q4 2025, Berkshire’s top ten holdings are: Apple, American Express, Bank of America, Coca-Cola, Chevron, Moody’s, Western Oil, Swiss Re, Kraft Heinz, and Alphabet. Moody’s moved up compared to the previous quarter, while Western Oil declined, reflecting the relative resilience of energy assets during the adjustment.

Google Holdings Remain Unchanged, AI Potential Unreduced

There were rumors circulating that Berkshire was divesting from Google, but the SEC’s official 13F filing clarified this. According to official data, Alphabet, Google’s parent company, held the same number of shares with no reduction. This fully demonstrates Buffett’s continued optimism about Google’s AI and cloud computing business prospects.

This quarter, Berkshire only added one new stock position—the New York Times, with a purchase of 5.067 million shares. This was the only new holding in Q4, further highlighting Berkshire’s cautious stock selection approach.

Unprecedented in History: Buffett’s Cash Surpasses Stock Value Significantly

Looking at this quarter’s data in a historical context, Buffett’s current cash holdings vastly surpass the market value of his stocks, an almost unprecedented situation. Over Berkshire’s 70-year investment history, similar phenomena have occurred only four or five times, each corresponding to major market turning points or periods of opportunity brewing.

This final quarterly report, and the significant gap between cash and stocks it reflects, indicates that Buffett has made his last strategic adjustments before passing the baton to the new leadership, laying out the company’s future plans.