Berkshire Hathaway (BRK.A, BRK.B) disclosed a record $402 billion cash position heading into Saturday's annual shareholder meeting in Omaha, Nebraska. CEO Warren Buffett, addressing roughly 38,000 attendees, told the audience that the firm "made meaningful purchases in April" — language that has historically preceded the disclosure of significant new equity stakes in subsequent 13F filings.
The 95-year-old chairman did not name specific targets but used the phrase "industrial cash flow generators trading at sensible multiples" — wording that Edward Jones analyst Jim Shanahan said "points strongly to either a U.S. industrial conglomerate or a major insurer." Berkshire trimmed its Apple (AAPL) stake by 14% in Q4 according to its February 13F filing and has been a net seller of equities for nine consecutive quarters.
Succession Mechanics in Focus
Buffett confirmed that designated successor Greg Abel, currently vice chairman of non-insurance operations, "will have full capital allocation authority" beginning in early 2027. This represents an acceleration of the prior succession timeline. Berkshire shares jumped 2.9% in Friday's session and are up 38% year-to-date, outperforming the S&P 500 by 32 percentage points.
Vice chairman Ajit Jain announced first quarter insurance underwriting profit of $5.4 billion, a 24% year-on-year increase, with Geico's combined ratio improving to 86.4 from 92.1. Berkshire Hathaway Energy posted operating earnings of $1.62 billion, up 18%, while BNSF Railway lagged at $1.12 billion as freight volumes softened.
Macro Commentary on the Dollar
Buffett offered notably hawkish commentary on the U.S. fiscal trajectory, telling attendees that "the dollar will not protect you from the actions of Congress" — a remark that fueled the modest weekend bid for the Japanese yen and Swiss franc. He confirmed Berkshire's yen-denominated bond program would expand by an additional $4 billion this fiscal year, anchoring the firm's ongoing buildout in Japanese trading houses (Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo).