In some quiet corner of Omaha, Nebraska, there sits the largest private collection of Treasury bills ever assembled in the history of capitalism.

If it were physical, and in the highest denomination ever made to the public ($10,000 bill), it would weigh nearly 84,000 pounds – requiring a logistic operation on par with the national mint.

However, for the last four decades, T-bills have been stored in a book-entry system, which is lucky for Greg Abel, Berkshire Hathaway's (NYSE:BRK) new CEO. They're merely a digital entry on the Federal Reserve's Fedwire system.

Yet avoiding the logistics still doesn't free Abel from the key question: what to do with the money?

The Cash Fortress

Berkshire is still selling more stocks than it buys. According to Kingswell, the conglomerate has now been a net seller for 14 consecutive quarters, even as it sits on a concentrated portfolio dominated by Apple, American Express, Bank of America, Coca-Cola, and Chevron.

Berkshire ended the first quarter with a record $380.2 billion cash position, towering over its $288 billion equity portfolio. That's a strong message from a company defined by stock picking.

At a recent annual meeting, Warren Buffett warned about the market becoming a "church with a casino attached," and Berkshire's behavior reflects that concern. Rather than stretch for deals, Abel is preserving liquidity for what he views as inevitable market dislocations.

When panic arrives, Berkshire expects to be one of the few institutions capable of writing multibillion-dollar checks, just like it did in 2008.

The restraint extends to Berkshire's own shares. Investors anticipated aggressive buybacks after Abel announced the restart of repurchases earlier this year. Yet, Berkshire bought back only $235 million. For a trillion-dollar conglomerate, that figure barely registers.

The Successor's Report Card

So far, Abel has passed his first quarter with flying colors. Operating earnings climbed to $11.3 billion, up 17.7% from a year earlier. Adjusted for currency fluctuations, growth was still a solid 7.2%.

Insurance, his close specialty, performed well. Underwriting profit reached $1.7 billion, while float — effectively investable capital generated from insurance operations — rose to $176.9 billion. The combined ratio across insurance operations came in at a sparkling 87.8%, helped by a catastrophe-free quarter.

There are still weak spots. BNSF Railway increased earnings and improved efficiency, posting an operating margin of 34.4%. But that performance trails rivals, including Union Pacific at 39.5%.

No Free Lunch for Hyperscalers

Utilities across the U.S. are racing to accommodate Meta, Google, and Microsoft, whose energy needs are increasingly akin to those of industrial economies. Abel wants Berkshire involved, but refuses to let ordinary customers absorb the risk.

Under what might be called the Abel Doctrine, hyperscalers must pay the full cost of new generation, transmission, and ongoing operations tied to their facilities. Berkshire will build the infrastructure, but the tech giants will foot the bill.

It is hardball capitalism wrapped in utility regulation. By refusing to socialize data-center costs across households and small businesses, Abel is drawing a line between growth and subsidy. 

If it happens, Berkshire gets exposure to the AI buildout without compromising balance-sheet discipline or political goodwill.

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