In the closing chapter of Warren Buffett's illustrious career at the helm of Berkshire Hathaway, the 95-year-old investing icon was still on the lookout for a significant acquisition opportunity.
At the beginning of 2026, Buffett relinquished his CEO duties to Greg Abel but emphasized that the size of a deal was not the hinderance, rather it was the lack of viable opportunities.
"It's external circumstances. Believe me if after we get finished talking you say, 'I've got a great $100 billion new idea.' I would say, 'Let's talk,'" Buffett expressed in an exclusive May interview with Becky Quick, following his announcement to step down at year's end.
This never-before-seen dialogue will feature in the "Warren Buffett: A Life and Legacy" special, airing Tuesday at 7 p.m. ET on CNBC.
The conversation sheds light on a prevailing paradox within Berkshire Hathaway. The conglomerate's cash reserves swelled to an all-time high of $381.6 billion by the end of the third quarter, yet Buffett identified no sizeable acquisition prospects at attractive valuations in 2025.
"It means that when I look at the stock market, when I look at companies of a size that would make any difference to our total, I don't see anything. Well, we're buying one or two things, but it's peanuts. But I'm willing to spend $100 billion this afternoon, you know," explained Buffett, continuing in his role as chairman, to CNBC.
In October, Berkshire finalized the acquisition of Occidental Petroleum's chemical division, OxyChem, for $9.7 billion in cash, marking the largest purchase since acquiring Alleghany for $11.6 billion in 2022.
Berkshire's cash reserves have significantly grown following Buffett's strategic divestment from major holdings like Apple and Bank of America.
Buffett has long preferred deploying cash into productive investments rather than letting it sit idle, regularly stating that cash, though necessary for unforeseen circumstances, is not a suitable long-term holding.
"I'd rather have $100 billion and a really good business at a sensible price than have $100 billion in cash," he asserted. "At certain levels, cash is necessary, but cash is not a good asset."
Buffett equated liquidity to oxygen, emphasizing its necessity while cautioning against running out.
"You always want to have enough," Buffett urged. "You don't have to pay a lot for it. But you do need oxygen. And cash is that way. You always need to have it available because you do not know what will happen. I do not know what the stock market will do, and I do not know what business will do."
Greg Abel, previously a key player in Berkshire's energy acquisitions, takes over amid expectations to make judicious use of the conglomerate's cash pile. While he boasts a solid track record, shareholders may demand prompt action given the underperformance of shares and the substantial liquidity at hand.