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As Warren Buffett prepared to hand over the reins of Berkshire Hathaway to Greg Abel at the start of 2026, the legendary investor remained on the hunt for what he calls an “elephant” deal—one large enough to significantly move the needle for the conglomerate.

Buffett, 95, emphasized that deal size was never the constraint. “It’s external circumstances. Believe me, if you say, ‘I’ve got a great $100 billion idea,’ I would say, ‘Let’s talk,’” he told CNBC in a rare interview this past May, part of the special “Warren Buffett: A Life and Legacy.”

A mountain of cash but few targets

Berkshire Hathaway ended the third quarter of 2025 with a record $381.6 billion in cash, giving the company unprecedented firepower for acquisitions. Yet Buffett found few opportunities that met his valuation standards. “We’re buying one or two things, but it’s peanuts. I’m willing to spend $100 billion this afternoon if the right deal comes along,” he said.

In October, Berkshire completed the $9.7 billion purchase of Occidental Petroleum’s chemical business, OxyChem, marking its largest acquisition since 2022’s $11.6 billion Alleghany deal. Buffett has also reduced holdings in Apple and Bank of America, further swelling the company’s cash reserves.

Despite the liquidity, Buffett repeatedly warned that cash is a poor long-term asset. “I’d rather have $100 billion and a really good business at a sensible price than have $100 billion in cash,” he said. He compared cash to oxygen: cheap to maintain, critical to have, but a poor wealth generator on its own.

Transition and challenges for Abel

Greg Abel, Buffett’s longtime lieutenant, has been instrumental in shaping Berkshire’s acquisitions, particularly in energy, and leading Berkshire Hathaway Energy’s transformation into a powerhouse. While his credentials are strong, analysts note that shareholders may demand faster deployment of capital, especially as Berkshire’s stock has underperformed the broader market.

Buffett’s final months highlight the tension between immense liquidity and the scarcity of attractive opportunities. Abel’s challenge will be to find deals that live up to the high standards set by Buffett while managing shareholder expectations in a market where mega acquisitions are increasingly rare.

The episode underscores a key paradox for Berkshire: a company flush with cash yet constrained by the realities of valuations and market conditions. For investors, it is a reminder of Buffett’s enduring discipline and the strategic patience required to preserve long-term value in a high-stakes market.

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