Berkshire Hathaway's Record $382 Billion Cash Contrasts with U.S. Government's $1.8 Trillion Annual Deficit

Omaha, Nebraska – Warren Buffett's Berkshire Hathaway has amassed a record $382 billion in cash, a figure highlighted in a recent social media post by The Kobeissi Letter, which starkly contrasts this with the significant borrowing by the U.S. government. The tweet noted, "> Warren Buffett's Berkshire Hathaway now has $382 billion in cash. That's not even enough to cover debt taken on by the US government in October 2025 alone, at $602 BILLION. We must end deficit spending." While the exact monthly deficit for October 2025 is not yet officially reported, the broader context of substantial U.S. government deficit spending for the fiscal year 2025 underscores the sentiment.

Berkshire Hathaway's cash reserves swelled to an unprecedented $381.7 billion in the third quarter of 2025, driven by a cautious investment strategy and a sharp rebound in operating profits. The conglomerate reported a 34% year-over-year increase in operating profit, reaching $13.5 billion, largely due to a surge in insurance underwriting income. This record cash pile comes as the company continued to sell more stocks than it bought, offloading $6.1 billion in shares during the period, and refrained from repurchasing its own stock for the fifth consecutive quarter.

Conversely, the U.S. government's fiscal year 2025 concluded with a deficit of $1.775 trillion, a figure confirmed by the Treasury Department. This annual deficit, while slightly lower than the previous year, remains substantial. Key drivers of federal spending include increased outlays on Social Security, Medicare, Medicaid, and a record $1.216 trillion in interest payments on the national debt, making it the second-largest expenditure after Social Security.

Budget analysts express ongoing concern over the nation's fiscal trajectory. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, stated that "the federal government continues to borrow $5 billion per day" and that "the fundamentals remain deeply troubling." Despite increased tariff revenues and cuts to education spending in fiscal year 2025, experts like Kent Smetters from the Penn Wharton Budget Model analysis group caution that the current path is "unsustainable."

The contrasting financial positions of a highly liquid private enterprise and a government facing persistent deficits underscore a broader economic debate. While Berkshire Hathaway's cash hoard reflects a conservative approach in a high-valuation market, the federal government's continued reliance on borrowing highlights systemic fiscal challenges and calls for renewed focus on deficit reduction.