Poll of the week: Are you increasing your cash levels like Buffett?

Earlier in the week, my colleague Stephanie Gardner wrote a wire about Warren Buffett, highlighting, amongst other things, the gargantuan cash pile the Oracle is now sitting on via Berkshire Hathaway.

At last count, the astonishing figure stood at US$381.7 billion.

To put that into perspective, Berkshire’s cash hoard is bigger than the combined market caps (in USD) of Australia’s two largest companies - Commonwealth Bank (ASX: CBA) and BHP Group (ASX: BHP) - which together sit around US$339 billion.

So, theoretically, Buffett could buy CBA and BHP, and throw in Woodside Energy (ASX: WDS) for good measure at US$32 billion, and still have around $10 billion left over in walking-around money.

The chart above shows how Berkshire’s cash mountain has grown over time. But that’s only half the story because while the portfolio has ballooned in size, so too has the proportion held in cash.

After crunching the data (and wrangling some AI help), here’s what we found: Berkshire’s cash, cash equivalents, and short-term T-bills (net of unsettled purchases) now represent a sharply higher share of total assets than in recent years. Buffett, it seems, is sitting on his hands. And his billions.

Whichever way you slice it, either in absolute or percentage of portfolio terms, Buffett has been stockpiling greenbacks at an incredible clip.

So what’s behind the hoarding? A lack of attractive deals? Caution on valuations? Or is Buffett simply waiting for the next great opportunity?

The data tells a powerful story, and it begs the question:

Take the poll above and share any additional thoughts in the comments section below.