Buffett's Hunt for Value in 2026
The largest cash position ever
In early 2026, Berkshire Hathaway holds more than $325 billion in cash and short-term Treasuries — the largest liquidity reserve in the conglomerate's history. For an investor famous for buying aggressively in bear markets, this positioning is a loud signal.
What the 13F filings show
Over the last four quarters, Berkshire has sold more than it has bought:
- Apple position reduced by over 60% — from once 50% of the equity book down to about 18%
- Bank of America trimmed in multiple tranches
- Citi sold completely
- Selective buys in energy (Occidental, Chevron) and Japanese trading houses
Why this restraint?
In his most recent shareholder letter, Buffett explicitly mentioned that "attractive opportunities at the desired scale have become rare." In Buffett-speak, that means: valuations are too high for him.
The Shiller P/E is currently above 35 — historically a level that has almost always been followed by weak 10-year returns.
What we can learn
1. Disciplined waiting is a position. Cash is not a defeat, it's an option.
2. Concentration can also mean reducing. Buffett has shown that even a $200B position can be trimmed.
3. Follow capital allocation, not headlines. What Berkshire does matters more than what Buffett says.
Be careful copy-trading
Berkshire's cash pile is only a bearish signal if you can reach its scale. For a retail portfolio, the lesson is more: take valuations seriously and don't be afraid to realize gains.