Andrew Bary

OMAHA, Neb. -- The billion-dollar question for Berkshire Hathaway CEO Greg Abel is how he deploys the company's huge cash pile.

That's roughly how Berkshire maven Chris Bloomstran described it at the 17th annual Value Investment conference sponsored by Gabelli Funds in Omaha, Neb., a day before Berkshire's annual meeting.

Berkshire's cash level stood at $373 billion at year end, and Bloomstran and others on a panel had some acquisition ideas for Abel. Bloomstran mentioned S&P Global, a large company with a $125 billion market value that owns S&P Ratings, one of the top credit-ratings firms.

S&P Global, a Barron's stock pick, is down almost 20% this year to $429 on AI disruption concerns that Bloomstran thinks are overblown. He noted Berkshire already holds a sizable stake in rival Moody's.

Bloomstran, the chief investment officer of Semper Augustus Investments, added that Berkshire probably needs just $100 billion of its cash to support its insurance business, giving it plenty of wherewithal for a large deal.

Adam Mead, author of The Complete Financial History of Berkshire Hathaway , said Berkshire should consider buying the rest of Occidental Petroleum, the energy company in which it holds a stake of more than 25%. Occidental stock trades around $59 and buying the rest of the company could cost Berkshire more than $50 billion.

Mead also suggested Copart, a leader in auctioning damaged or totaled automobiles often sold by insurers. It has only one competitor, he noted, and Copart's stock is down almost 50% in the past year. Copart, he said, is digestible with a market value around $30 billion and its valuation is down to under 20 times earnings. Shares trade around $33.

Brett Gardner, author of Buffett's Early Investments, mentioned Kinsale Capital Group, a highly profitable specialty insurer of property and casualty risks. That stock is down about 40% from its peak a year ago to $317 -- and it hit a 52-week low Friday.

P&C insurers have been under pressure due to concerns about weakening pricing.

Gardner also said Abel might look in his "circle of competence," which includes utilities and infrastructure.

Write to Andrew Bary at andrew.bary@barrons.com

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May 01, 2026 15:35 ET (19:35 GMT)

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