Why Buffett's cash pile keeps growing — even as he calls valuations "reasonable"

Berkshire Hathaway ended the first quarter of 2026 with $189 billion in cash and short-term Treasuries — a record, and an increase of $14 billion from the prior quarter. This accumulation has continued even as Warren Buffett has, in recent public comments, described U.S. equity valuations as “not unreasonable.”

The apparent contradiction has puzzled some observers. If stocks are reasonably priced, why not deploy the cash? The answer, on closer examination, is that the two statements are not actually in tension.