Berkshire Hathaway's Cash Reserves Yet to Reflect Recent Fed Rate Hike

Following the Federal Reserve's 0.25 percentage point rate hike to 3.75%-4.00% on September 16, Berkshire Hathaway's $359.2 billion cash and Treasury bill stockpile has not yet shown a corresponding increase in investment income. The delay is attributed to the time required for maturing assets to be reinvested at higher rates. Berkshire's first-half 2026 results showed a slight decline in investment income despite a growing cash position, with net earnings growth driven primarily by unrealized stock gains rather than interest income.