Imagine Warren Buffett, the Oracle of Omaha, still hunting for that perfect deal, even as he neared the end of his legendary run at Berkshire Hathaway. This wasn't about a lack of funds; it was about finding the right opportunity.
In a special interview with Becky Quick in May, just before handing over the CEO reins to Greg Abel at the start of 2026, Buffett revealed a fascinating challenge. He was looking for that elusive 'elephant' – a massive acquisition – but couldn't find any at prices he deemed reasonable.
"It's external circumstances," Buffett explained, highlighting the scarcity of appealing investment targets. He was ready to spend, even offering, "I'm willing to spend $100 billion this afternoon."
This sentiment is highlighted in the "Warren Buffett: A Life and Legacy" special airing Tuesday at 7 p.m. ET. on CNBC.
This situation underscores a key paradox at Berkshire. The company was swimming in cash, with its hoard reaching a record $381.6 billion by the end of the third quarter of 2025. But Buffett found no opportunities in 2025 large enough to make a significant impact at prices he considered sensible.
"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," Buffett said.
In October, Berkshire did close a deal to buy Occidental Petroleum's chemical business, OxyChem, for $9.7 billion, its largest purchase since 2022, when it acquired insurer Alleghany for $11.6 billion.
Berkshire's cash reserves had grown significantly after Buffett aggressively sold off large portions of his two biggest holdings: Apple and Bank of America.
Buffett doesn't want to hold onto this much cash. He's always warned that cash isn't a great long-term asset, even while maintaining ample reserves to weather any unexpected market downturns.
"I'd rather have $100 billion and a really good business at a sensible price than have $100 billion in cash," he stated. "At certain levels, cash is necessary, but cash is not a good asset."
He compared liquidity to oxygen, essential but cheap to maintain until you run out.
"You always want to have enough," Buffett said. "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, who took over from Buffett, has been a key figure in Berkshire's acquisitions, particularly in the energy sector, helping to build Berkshire Hathaway Energy into a powerhouse.
But here's where it gets controversial: While Abel's deal-making skills are proven, will Berkshire shareholders be as patient with him as they were with Buffett? With a vast cash reserve and shares potentially underperforming the market, the pressure to deploy capital could quickly become a defining challenge for the new CEO.
What do you think? Will Abel be able to find the 'elephants' Buffett was searching for? Share your thoughts in the comments below!
