The Zhitong Finance App learned that Berkshire Hathaway Class B shares rose 3.2% intraday to $543.06 on Wednesday, setting a new all-time high on May 2, 2025. When Buffett announced his resignation a year ago, the stock price fell for several months, and now the market has used a new high to complete the first pricing for the “post-Buffett era.” It is worth noting that against the backdrop of sharp fluctuations in AI semiconductors and continuing pressure on corporate debt, Berkshire's new high was interpreted by the market as a victory for defensive logic.
Cash reserves are approaching 400 billion US dollars, and Abell has the “right to choose”
Less than a year after taking office, Abell made frequent moves: restarting stock buybacks, acquiring Taylor Morrison Home Corp. for $8.5 billion, and drastically increasing Alphabet's holdings to about $37.8 billion in the second quarter. However, analysts pointed out that the core support for the new high stock price was not these transactions themselves, but the balance sheet left by Buffett.
According to the data, Berkshire's cash reserves have risen to about 397 billion US dollars, continuing to set a new record compared to 373 billion US dollars at the end of 2025. Liquidity of close to 400 billion US dollars accounts for more than 50% of total investable assets. KBW analyst Meyer Shields said bluntly that high short-term interest rates mean that this cash “will make more profit.” In other words, when others are forced to shrink, Berkshire still has the ability to shoot; this itself is a kind of alpha.
AI semiconductors have been falling for eight days in a row, and cracks in the financing structure have surfaced
The Philadelphia Semiconductor Index has fallen by more than 13% over the past eight trading days, and its market capitalization has evaporated by about 2 trillion US dollars, setting the record for the longest continuous decline since the 2008 financial crisis. On the surface, the “AI bubble theory” is fermenting again, but the real rift appeared on the credit side. CoreWeave's stock price plummeted by more than 25% in a single week, bonds fell to a difficult level, CDS rose to 1128 points, market pricing exceeded 50% probability of default, and the trading price of a $1 denominated bond was only about $0.78.
Bank of America Michael Hartnett pointed out that the market focus has changed from “how much AI space is there” to “how much profit can be made from huge investments in the end.” AI infrastructure capital expenditure is approaching $1 trillion a year, and a significant proportion relies on debt financing, and the 10-year US Treasury yield has risen to 5.09%. High interest rates simultaneously reduce the present value of future cash flows and raise financing costs, putting a double squeeze on AI narratives that rely on leveraged expansion.
Debt default chain bypasses Berkshire
Debt pressure isn't limited to the AI sector. According to the data, the interest rate spread between CCC-grade US corporate bonds and treasury bonds has widened to 12 percentage points, compared to 8.08 percentage points a year ago; the default recovery rate in the past 12 months was only 29%. J.P. Morgan strategists expect that the default rate for high-yield bonds will rise from 2.25% in 2026 to 2.75% in 2027, and the default rate for leveraged loans will reach 4.50% during the same period.
Moody's previously estimated that more than $1 trillion of investment-grade debt will mature in the next few years, and rising interest rates will force companies to refinance at a higher cost. In this chain, Berkshire is almost the only large entity that doesn't need to answer “what to do when the debt matures” — its cash generates interest, and other people's debts put pressure on it. Apple and Coca Cola's holdings have recently set records one after another, further supporting book value.
The essence of “old spicy”: there is no need to be forced to sell on a day of decline
At the shareholders' meeting, Abell clearly stated that “AI will not be done for AI's sake” and argued that the electricity costs of data center expansion should be borne by hyperscale customers. This statement seemed conservative during the AI frenzy, but looking at it after CoreWeave bond yields exceeded 15%, it was really a discipline.
Analysts pointed out that Buffett's legacy has never been just stock selection records, but a structure that preserves the right to choose the future with cash when others gamble on the future with debt. Berkshire's stock price set a new high price precisely because of the scarcity of this structure when fluctuations increase.