Bitcoin Updates: Berkshire Faces $381B Cash Dilemma Amid Buffett’s Departure

Warren Buffett will retire as CEO of Berkshire Hathaway Inc. (NYSE:BRK-A) at the close of 2025, concluding a leadership era that has shaped the company’s character and investment strategy for nearly sixty years. In his last message to shareholders, Buffett is expected to discuss topics such as philanthropy, Berkshire’s outlook, and the legacy he leaves behind, with the letter to be published on the company’s website

. This announcement follows Berkshire’s cash reserves reaching an unprecedented $381.7 billion in the third quarter of 2025, fueled by robust results from its insurance and railroad businesses, even as Buffett has remained hesitant to pursue share buybacks or major acquisitions . The company’s cash position, now above $381 billion, highlights Buffett’s conservative approach amid elevated stock valuations and economic uncertainty. However, this substantial liquidity has prompted debate about its intended purpose, especially since Berkshire has not repurchased shares for five consecutive quarters—an unusual stance for the “Oracle of Omaha” .

Berkshire’s third-quarter financials showcased its durability, with operating earnings up 34% year-over-year to $13.49 billion and net profit increasing 17% to $30.8 billion. Yet, revenue growth was modest at 2%, trailing the U.S. economy’s 3.8% growth rate. CFRA’s Cathy Seifert commented on this gap, saying, “Berkshire, often considered a reflection of the U.S. economy, is falling behind,” while still assigning a “Hold” rating to the shares . The upcoming leadership transition to Greg Abel, who will take over as CEO in early 2026, has led to speculation about Berkshire’s future path. Abel will also assume responsibility for the annual shareholder letter, a tradition long upheld by Buffett. This change highlights the challenge of preserving Berkshire’s unique culture and operational unity after Buffett’s departure. In his final letter, Buffett is anticipated to express his trust in Abel’s leadership and emphasize the company’s advantages, such as its $300 billion-plus cash reserves and broad earnings base . Meanwhile, Buffett’s philanthropic efforts remain in the spotlight, as he reiterates his intention for his children to collectively determine the future of his $147 billion Berkshire holdings .

Buffett’s investment style stands in sharp contrast to that of peers like MicroStrategy’s Michael Saylor, who has aggressively invested in

. While Berkshire’s cash includes $306 billion in U.S. Treasury bills with a 4.2% yield, Saylor’s company has allocated $4.5 billion to Bitcoin, which appreciated 16% in the third quarter. Experts continue to debate these differing strategies: Buffett’s prudence maintains flexibility in an expensive market, while Saylor’s approach is rooted in confidence in Bitcoin as a hedge against inflation . Berkshire’s long-term performance—averaging a 19.9% annual return since 1965—suggests Buffett’s philosophy may still prevail, though short-term market swings remain a risk .

Meanwhile, retail investors have been a driving force behind market optimism, with JPMorgan reporting $1.4 trillion in ETF inflows for 2025. This stands in contrast to institutional investors, as 60% of fund managers believe stocks are overpriced

. Berkshire shares have declined 4.5% so far this year, pressured by the diminishing “Buffett premium,” though its diverse mix of insurance, rail, and utility businesses continues to provide stability .