The current listed market capitalisation of the S&P 500 stands at $45.378 trillion. Based on Warren Buffett’s cash pile, he could buy out the bottom 476 companies in the index, which together account for approximately 73% of its total market capitalisation (calculated as of Tuesday’s close).
The S&P 500 accounts for approximately 80% of the market value of all publicly traded US stocks and includes 500 of the nation’s largest companies.
In 2024, Berkshire sold $134 billion worth of equities, ending the year with a cash pile nearly double that of the previous year.
Buffett has been hoarding cash after trimming major holdings, including in Apple and Bank of America.
The Omaha-based conglomerate reduced its stake in Bank of America to 8.9% in Q4, offloading 117.5 million shares, according to a regulatory filing.
Although Berkshire cut its Apple position earlier in 2024, it left the stake unchanged in the final months of the year. Apple remains the company’s largest holding, making up 28% of the portfolio.
In his latest letter to Berkshire shareholders, Warren Buffett explained why the company held $334 billion in cash at the end of 2024.
His decision to hold more cash has paid off. Berkshire Hathaway’s stock is up over 17% in 2025, while the S&P 500 has dropped 8%.
Still, Buffett reassured investors that most of Berkshire’s money is still in stocks, especially US stocks. He said this won’t change anytime soon.
In the letter, he wrote, “Berkshire will never prefer owning cash-like assets over owning good businesses, whether we fully or partly own them.”
Meanwhile, US stocks recorded modest losses on Tuesday as investors analysed the latest batch of first-quarter earnings reports and enjoyed a recent decline in market turmoil.
The Dow Jones Industrial Average tumbled 155.83 points, or 0.38%, to close at 40,368.96. The S&P 500 fell 0.17% and ended at 5,396.63. The Nasdaq Composite declined 0.05% and closed at 16,823.17. The three averages are coming off back-to-back winning sessions.
Tuesday’s muted moves were in stark contrast to the volatile swings seen in recent sessions.
The CBOE Volatility Index, or VIX, known as Wall Street’s “fear gauge,” fell to about 30 after hitting a high of around 60 last week.
US stocks may be due for more chaotic moves following US President Donald Trump’s tariff uncertainty, analysts believe.
“Technically, we are ‘not out of the woods yet,’ as we’d like to see the SPX recover its March lows and make another ascent toward its 50-/200-day MAs at around 5,750-5,800,” analyst Craig Johnson said. “Investors are returning to the equity market despite the crosscurrents in the macro picture.”
“We expect investors to temporarily shift their attention to earnings and away from tariffs, allowing the macro picture to settle down in the upcoming weeks,”Johnson said.
