Berkshire Hathaway's $397B Cash Deployment Moves and SpaceX Telecom Acquisition Speculation

M&A/IPO | Sun Aug 02 2026 00:00:00 GMT+0000 (Coordinated Universal Time) | 4 sources

Berkshire's record cash holdings and M&A strategy under Greg Abel, alongside SpaceX's potential acquisition of a US telecom carrier.

Analysis

[Berkshire Hathaway] held record $397 billion in cash ^[2]^[3]

End of Q1 cash
cash equivalents
and short-term Treasuries totaled $397 billion
Only 24 companies in the S&P 500 have market caps exceeding this cash pile
Concerns over under-earning due to parking funds in short-term Treasuries

[Warren Buffett] divested major stakes in Apple and Bank of America ^[2]

Apple holdings reduced from a peak of 915 million shares to 228 million shares
Bank of America stake cut by over 75% since 2024
now at 514 million shares
Cash reserves grew through large-scale stake sales

[Greg Abel] declared capital allocation principles based on patience and discipline ^[2]

Evaluates opportunities based on permanent growth in per-share intrinsic value
Announced two acquisitions in 2025: OxyChem and Bell Laboratories
Q1 share buybacks were modest at $235 million

[Buffett Indicator] hit 219%, exceeding historical average by 64% ^[3]^[2]

Metric dividing US stock market capitalization by GDP
Buffett said markets exceeding 200% are 'playing with fire'
Overvalued conditions delaying major acquisitions

[Berkshire Hathaway Stock] reached 8-month high ^[4]

B shares closed Tuesday at $512.37
highest since November 28 last year
A shares closed Tuesday at $768
010
an 8-month high
Still trailing S&P 500 by 7.6 percentage points
though recent gap narrowed

[SpaceX] faced speculation over potential US telecom acquisition ^[1]

Potential M&A scenario aimed at expanding Starlink wireless network
Seeking Alpha analysts divided in their views
Observed as Elon Musk-led entry into the telecom market

Sources