Buffett’s Cash Hits Record $157 Billion Amid Scarce Deals

(Bloomberg) — Berkshire Hathaway Inc.’s cash pile scaled a fresh record at $157.2 billion, bolstered both by elevated interest rates and a dearth of meaningful deals where billionaire investor Warren Buffett could put his money to work.

Most Read from Bloomberg

The hoard — which Berkshire has largely parked in short-term Treasuries — hit its highest level since the third quarter of 2021, the Omaha, Nebraska-based firm said on Saturday. The conglomerate also reported operating earnings of $10.76 billion, a jump on the prior year, as it benefited from the impact of elevated interest rates on the cash pile and gains at its insurance businesses.

Despite ramping up Berkshire’s acquisition machine in recent years, the company has still struggled to find many of the big-ticket deals that galvanized Buffett’s renown, leaving him with more cash than he and his investing deputies could quickly deploy. After hanging back during the pandemic, he’s since snapped up shares in Occidental Petroleum Corp. and struck a $11.6 billion deal to buy Alleghany Corp. Buffett has also leaned heavily on share repurchases amid the dearth of appealing alternatives, saying the measures benefit shareholders.

“Cash deployment is definitely slowing,” said Jim Shanahan, an analyst with Edward Jones. “Ultimately Berkshire’s going to start feeling some pressure to put cash to work.”

The deal drought hasn’t damped investor enthusiasm for the company. Its Class B shares crested a record high in September as investors sought out its diversified range of businesses as a hedge against deteriorating economic conditions. And while the shares pared some of those gains, the stock is still up almost 14% for the full year.

Story continues

Read More: Buffett’s Berkshire Rallies to Record High on Earnings Beat

The firm also spent $1.1 billion on buybacks in the period, bringing the total for the first nine months of the year to about $7 billion. The conglomerate trimmed its overall equities…