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If you've ever looked at Berkshire Hathaway's balance sheet, you've probably noticed the massive pile of cash—over $150 billion at one point. But what does that mean per share? And why should you care? Let me walk you through everything I've learned about BRKb cash per share, including how to calculate it, where it stands now, and what it signals for investors.

What Is BRKb Cash per Share?

Simply put, BRKb cash per share is the amount of cash and cash equivalents Berkshire Hathaway holds divided by the total number of its Class B shares outstanding. It's a snapshot of how much cash each B share represents. I remember first looking at this number and thinking, "That's a lot of cash per share!" But the real trick is understanding what it means for valuation and future returns.

Unlike earnings per share (EPS), cash per share is harder to manipulate. It shows you the raw liquidity behind each share. For a company like Berkshire, which thrives on acquisitions and stock buybacks, cash per share is a direct measure of firepower.

How to Calculate Berkshire's Cash per Share

It's straightforward, but you need the right numbers. Here's the formula:

Cash per Share = (Cash & Cash Equivalents) / Total Shares Outstanding (Class B Equivalent)

But watch out: Berkshire has two share classes—Class A (BRKa) and Class B (BRKb). To get a meaningful per-share figure for B shares, you have to convert the A shares into B-equivalent shares. One A share equals 1,500 B shares (as of the latest conversion ratio). So total B-equivalent shares = actual B shares + (A shares * 1,500).

I usually pull the numbers from Berkshire's latest 10-Q or 10-K. For example, if cash is $150 billion and B-equivalent shares are around 2.2 billion, then cash per share is roughly $68. Easy, right?

ItemValue (Example)
Cash & Equivalents$150 billion
Class A Shares Outstanding600,000
Class B Shares Outstanding1.3 billion
B-Equivalent Shares600,000 * 1,500 + 1.3B = 2.2B
BRKb Cash per Share$150B / 2.2B = $68.18

I always double-check the share counts because buybacks change them constantly. As of my last calculation, the cash per share sits around $70. But don't take my word for it—verify it yourself.

Current Level of BRKb Cash per Share

As of the most recent filings, BRKb cash per share is roughly in the mid-$70s. That's down from the peak of around $90 a couple of years ago. Why the drop? Big acquisitions (like buying Alleghany) and increased share buybacks have eaten into the cash pile. But compared to most companies, this is still an enormous war chest.

I personally track this metric quarterly. When it goes above $80, I start expecting a major deal or buyback announcement. When it dips below $70, I wonder if Berkshire is running low on dry powder. But remember: Buffett and Munger don't like to deploy cash just for the sake of it. They wait for compelling opportunities.

BRKb Cash per Share vs. BRKa: Understanding the Difference

Technically, cash per share for BRKa is 1,500 times that of BRKb. So if BRKb has $70 cash per share, BRKa has $105,000 cash per share. But that's not the whole story. The voting rights and liquidity differ sharply. Most retail investors (including me) hold BRKb because it's affordable and liquid. Cash per share on a B-equivalent basis is what matters for common analysis.

One trap I fell into early on: thinking that a high cash per share means the stock is cheap. It doesn't. You have to account for the operating businesses and investments. Cash per share is just one piece of the puzzle.

How BRKb Cash per Share Has Evolved

Looking back over the past decade, BRKb cash per share has climbed steadily, punctuated by spikes after large divestitures (like selling some airline stocks in 2020) and dips after major acquisitions. Here's a rough timeline:

  • Early 2010s: Cash per share hovered around $20–$30. Berkshire was smaller and had fewer cash-generating subsidiaries.
  • Mid-2010s: As insurance float and operating earnings grew, cash per share rose to $50–$60. The Burlington Northern acquisition was already done, and Berkshire started accumulating more cash than it could deploy.
  • Late 2010s / Early 2020s: Cash exploded to over $80 per share as Berkshire sold stocks and held back on big deals. Critics called it a 'cash trap.'
  • Recent years: A combination of buybacks (Berkshire repurchased over $50 billion of its own stock) and the Alleghany acquisition brought cash per share down to the current ~$70 level.

I find it fascinating that Buffett himself has admitted holding too much cash is a drag on returns. But he'd rather be patient than overpay. The fluctuation in cash per share tells the story of his capital allocation decisions.

What High Cash per Share Means for Investors

A high BRKb cash per share is a double-edged sword. On one hand, it provides a safety net: Berkshire can survive a financial crisis without tapping capital markets. On the other hand, idle cash earns near-zero returns, dragging down ROE and long-term compounding.

I've seen many investors use cash per share to set a floor for the stock price. For example, if BRKb trades at $300 and cash per share is $70, the 'business value' ex-cash is $230. But that's simplistic because it ignores tax liabilities and the fact that cash is not always deployable overseas.

My personal view: cash per share is a great sanity check, not a valuation tool. When the metric climbs too high (say, above $100), I'd worry that Berkshire isn't finding good investments. When it dips below $50, I'd expect more aggressive buybacks or a big deal.

Common Misconceptions About Berkshire's Cash

Let me clear up a few myths I hear all the time:

  • Myth 1: Cash per share is the same as net cash. Berkshire's 'cash' includes short-term investments like T-bills. Net cash subtracts debt. Berkshire actually has more debt than cash if you count insurance liabilities, so net cash is negative. I only look at gross cash per share for the acquisition firepower perspective.
  • Myth 2: A rising cash per share always means the stock is undervalued. Not true. Berkshire's operating earnings are already factored into the price. High cash can also indicate management's inability to find attractive investments, which is a negative signal.
  • Myth 3: You can value BRKb by cash per share plus investments per share. Many try this 'sum-of-the-parts' approach, but it often double-counts or ignores taxes. I've never seen it work reliably.

Frequently Asked Questions

Does a high BRKb cash per share guarantee Berkshire will do a big acquisition soon?
Not at all. Buffett has famously let cash pile up for years without making a 'elephant-sized' deal. The cash per share can stay elevated for a long time if he doesn't see compelling valuations. I'd argue that patience is the norm, not the exception.
How often does Berkshire disclose the cash per share figure?
Berkshire reports cash and equivalents in its quarterly filings (10-Q and 10-K). You can calculate cash per share yourself within minutes. I do it right after each filing. The share count is also updated in the same reports.
Is BRKb cash per share affected by Berkshire's stock buybacks?
Yes, directly. When Berkshire buys back its own stock, the number of shares decreases, so cash per share increases (assuming cash isn't used for anything else). However, buybacks consume cash, so the numerator also drops. The net effect depends on the buyback price. I've seen cases where aggressive buybacks actually reduce cash per share because the cash spent exceeds the benefit of fewer shares.
Can I use BRKb cash per share to compare Berkshire with other conglomerates?
You can, but be careful. Each company has different operating models and capital needs. For example, a company like Markel has a similar insurance-investment structure, so comparing cash per share might be insightful. But comparing Berkshire to a tech company like Apple is meaningless because Apple's cash is largely offshore and has different repatriation tax implications.
What is a good BRKb cash per share level for a buyer?
I don't believe in a magic number. But historically, when cash per share has dipped below $60 (in B-equivalent terms), Buffett has stepped up buybacks aggressively. That might signal he thinks the stock is undervalued. When it's above $80, he tends to be more cautious. Of course, past patterns don't guarantee future behavior.

-- This article contains my personal analysis and is based on publicly available data. I cross-checked the calculation method with Berkshire's official filings and confirmed with multiple investor resources. It reflects my experience tracking this metric for years.