Buffett Explains Berkshire’s Cash Hoard, Warns of 0DTE Speculation and AI Risks

Berkshire Hathaway has long been known for keeping ample funds on hand while waiting for acquisitions or investments offering a margin of safety. Its cash position, approaching $400 billion, reflects Buffett’s view that there are currently few large opportunities worth holding for 10 to 20 years. Meanwhile, the popularity of zero-days-to-expiration, or 0DTE, options has made the line between investing and highly leveraged speculation harder to distinguish.

In a recent interview, Buffett offered his first detailed explanation of the high cash level, stressing that Berkshire is not bearish on the market but will not lower its investment standards simply because funds are sitting idle. He likened today’s stock market to “a church with a casino attached” and warned that 0DTE trading is fueling unprecedented gambling fervor. He also said rapidly advancing AI deepfake technology in 2026 can fabricate images and voices, potentially spreading disinformation and eroding social trust.