As he approached the end of his leadership at Berkshire Hathaway, Warren Buffett was still on the hunt for that rare elephant.
The legendary 95-year-old investor, who transferred the CEO responsibilities to Greg Abel at the beginning of 2026, emphasized that the size of deals was not the issue; the shortage of opportunities was.
“It’s external factors. Trust me, if after we conclude our conversation you say, ‘I’ve got an incredible $100 billion proposal.’ I would respond, ‘Let’s converse,'” Buffett shared with Becky Quick during a unique interview in May following his announcement of his retirement at the year’s end.
This unseen interview is included in the “Warren Buffett: A Life and Legacy” special that airs Tuesday at 7 p.m. ET on CNBC.
His comments highlight a significant contradiction currently facing Berkshire. The company is flush with cash, boasting a cash reserve reaching an unprecedented $381.6 billion at the close of Q3, yet Buffett identified no substantial opportunities in 2025 at prices he considers reasonable.
“It signifies that when I observe the stock market, when I assess companies of a size that could impact us significantly, I see nothing. Sure, we’re acquiring one or two things, but they are negligible. However, I’m ready to invest $100 billion this afternoon, you know,” Buffett, now serving as chairman, remarked to CNBC.
In October, Berkshire finalized a transaction to acquire Occidental Petroleum’s chemical division, OxyChem, for $9.7 billion in cash, representing its largest acquisition since 2022 when it purchased insurer Alleghany for $11.6 billion.
Berkshire’s cash reserves have escalated notably following Buffett’s strategic divestments of major portions of his two largest investments, Apple and Bank of America.
Buffett does not wish to maintain an excess of cash. He has consistently cautioned that cash is not a favorable long-term asset, while advocating for holding sufficient reserves to handle unforeseen circumstances.
“I would prefer to have $100 billion and a truly excellent business at a rational price than hold $100 billion in cash,” he expressed. “At specific levels, cash becomes essential, but it is not an optimal asset.”
He compared liquidity to air, inexpensive to sustain but devastating to lack at critical times.
“You always aim to have enough,” Buffett stated. “You don’t have to overpay for it. But oxygen is necessary. And cash functions similarly. It should always be accessible because you can’t predict what will occur. I cannot foresee the stock market’s trajectory, nor can I predict business performance.”
Abel has been a long-standing associate who has been instrumental in numerous Berkshire acquisitions, particularly in the energy sector, and he has significantly contributed to the transformation of Berkshire Hathaway Energy into a leader in the field.
Though Abel’s reputation for deal-making is well established, Berkshire shareholders might not grant him the same leniency they have shown Buffett over the years. With the conglomerate sitting on a vast cash pile and stocks lagging behind the market, the demand to allocate capital could swiftly become a pivotal hurdle for the new CEO.
