London Daily

Focus on the big picture.
Saturday, Mar 14, 2026

Warren Buffett's Cash Pales Next To This

Warren Buffett's Cash Pales Next To This

Warren Buffett's Berkshire Hathaway turned heads with what one analyst called its "obscene" level of $128 billion in cash on hand at quarter's end. But one S&P 500 company has even more dough - and a bigger yield: Microsoft.

Thanks to its cloud-computing powered resurgence, Microsoft (MSFT) now has $136.6 billion in cash and short-term investments. That's more than any other non-financial in the S&P 500. The total is more than Apple's (AAPL) famous $100.6 billion mound of cash and U.S. Treasuries. And it's more than the $121.2 billion amassed by Google parent Alphabet (GOOGL).

And best of all for you: Microsoft's 1.4% dividend beats them all. Apple yields just 1.2%. And Microsoft's dividend yield also tops the 1.14% yield of the Technology Select Sector SPDR ETF (XLK), which both Microsoft and Apple belong to.

Berkshire's yield? It's zero, making it a notable company left out of the 1.6% yield paid by the Financial Select Sector SPDR ETF (XLF).

Thanks to its cloud-computing powered resurgence, Microsoft (MSFT) now has $136.6 billion in cash and short-term investments. That's more than any other non-financial in the S&P 500. The total is more than Apple's (AAPL) famous $100.6 billion mound of cash and U.S. Treasuries. And it's more than the $121.2 billion amassed by Google parent Alphabet (GOOGL).

And best of all for you: Microsoft's 1.4% dividend beats them all. Apple yields just 1.2%. And Microsoft's dividend yield also tops the 1.14% yield of the Technology Select Sector SPDR ETF (XLK), which both Microsoft and Apple belong to.

Berkshire's yield? It's zero, making it a notable company left out of the 1.6% yield paid by the Financial Select Sector SPDR ETF (XLF).


Warren Buffett Lags In Another Way

Microsoft isn't just topping Berkshire Hathaway's (BRKA) yield and cash. Microsoft's stock is making the "world's greatest stock picker's" stock look like dead money.

Shares of Berkshire, despite paying no dividend, are up just 6.9% this year. That not only trails Microsoft's 42.2% gain this year, but also the 23% gain of SPDR S&P 500 ETF Trust (SPY). Berkshire's IBD Composite Rating of 46 is well below Microsoft's at 95.

Longer term, you can also see why Warren Buffett finds it so difficult it is to beat SPY stock. Shares of his Berkshire Hathaway are up just 53.5% over the past five years, barely edging out the 52.9% gain of the S&P 500. Keep in mind, though, the S&P 500 pays an annual dividend while Berkshire pays zilch.


Where's The Cash?

Microsoft's mounting cash pile only highlights the tech sector's enormous financial flexibility. Four of the 10 S&P 500 companies with the most cash and equivalents and short-term investments are in the information technology sector. This single sector of the 10 in the S&P 500 (excluding financials) holds more than a third of all cash and short-term investments reported so far in the third quarter.

Only the communication services sector comes anywhere close with $231 billion. Much of that is Alphabet and Facebook (FB), with $52.3 billion. Many of these tech companies don't pay any dividend at all (yet).

Looks like Warren Buffett has competition for the fattest wallet.

Newsletter

Related Articles

0:00
0:00
Close
Middle East War Highlights Strategic Importance of Strong UK–Ireland Cooperation
Weak Growth Signals UK Economy Was Faltering Even Before Middle East Energy Shock
Marks & Spencer Tops UK Fashion Retail Rankings as Most Considered Brand
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Royal Navy to Acquire Twenty Uncrewed Surface Vessels for Autonomous Warfare Testing
Russia Summons British and French Envoys After Ukrainian Storm Shadow Strike on Strategic Facility
Starmer Confirms Britain Will Maintain Sanctions on Russia Despite U.S. Policy Shift
UK Moves to Refine AI Definition in Investment Security Reform
UK Economy Stalls in January as Growth Unexpectedly Falls to Zero
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Tesla Secures Approval to Supply Electricity Directly to Homes Across Britain
Prince William Delivers Tribute to Australia’s Naval Alliance Amid Renewed Royal Spotlight on the Country
UK Foreign Secretary Travels to Saudi Arabia to Reinforce Support for Regional Allies
Putin’s ‘Hidden Hand’ May Be Assisting Iran in Conflict With Trump, UK Defence Secretary Warns
UK Sets April Deadline for Tech Platforms to Strengthen Online Protections for Children
Elon Musk Moves Into Britain’s Energy Market as Tesla Wins Licence to Supply Power
UK Watchdog Warns Fuel Retailers Against Profiteering Amid Iran War Price Surge
Report Claims Iran Used UK Charity Network to Expand Influence
United States and United Kingdom Establish Joint Standards for Counter-Drone Technology
Iran May Be Laying Naval Mines in Strait of Hormuz, UK Warns Amid Escalating Gulf Tensions
US Deploys Bunker-Buster Bombs to UK Airbase as Iran Conflict Intensifies
British Troops in Iraq Intercept Iranian Drones Targeting Coalition Base
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
British Airways Suspends UK Repatriation Flights as Middle East Travel Disruption Deepens
US Forces Prepare Ordnance at RAF Fairford as Strategic Bombers Deploy for Middle East Operations
Nigel Farage Faces Criticism After Saying Britain Should Stay Out of Iran War
Landmark UK Trial Begins Over Sony’s PlayStation Store Pricing
UK High Court Rejects Bid to Challenge Britain’s Chagos Islands Agreement With Mauritius
Finnish Duo Triumphs in England’s Annual Wife-Carrying Race, Winning a Barrel of Ale
How U.S. and UK National Security Strategies Are Reshaping the Global Business Landscape
Green Party Gains Momentum as Labour Shifts Toward the Political Centre
Royal Navy Destroyer HMS Dragon Sets Sail for Eastern Mediterranean as Regional Tensions Rise
UK Homebuilder Persimmon Warns Iran Conflict Could Dent Property Buyer Confidence
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
×