London Daily

Focus on the big picture.
Thursday, Dec 25, 2025

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
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
Starmer and Trump Coordinate on Ukraine Peace Efforts in Latest Diplomatic Call
The Pilot Barricaded Himself in the Cockpit and Refused to Take Off: "We Are Not Leaving Until I Receive My Salary"
UK Fashion Label LK Bennett Pursues Accelerated Sale Amid Financial Struggles
U.S. Government Warns UK Over Free Speech in Pro-Life Campaigner Prosecution
Newly Released Files Shed Light on Jeffrey Epstein’s Extensive Links to the United Kingdom
Prince William and Prince George Volunteer Together at UK Homelessness Charity
UK Police Arrest Protesters Chanting ‘Globalise the Intifada’ as Authorities Recalibrate Free Speech Enforcement
Scambodia: The World Owes Thailand’s Military a Profound Debt of Gratitude
Women in Partial Nudity — and Bill Clinton in a Dress and Heels: The Images Revealed in the “Epstein Files”
US Envoy Witkoff to Convene Security Advisers from Ukraine, UK, France and Germany in Miami as Peace Efforts Intensify
UK Retailers Report Sharp Pre-Christmas Sales Decline and Weak Outlook, CBI Survey Shows
UK Government Rejects Use of Frozen Russian Assets to Fund Aid for Ukraine
UK Financial Conduct Authority Opens Formal Investigation into WH Smith After Accounting Errors
UK Issues Final Ultimatum to Roman Abramovich Over £2.5bn Chelsea Sale Funds for Ukraine
Rare Pink Fog Sweeps Across Parts of the UK as Met Office Warns of Poor Visibility
UK Police Pledge ‘More Assertive’ Enforcement to Tackle Antisemitism at Protests
UK Police Warn They Will Arrest Protesters Chanting ‘Globalise the Intifada’
Trump Files $10 Billion Defamation Lawsuit Against BBC as Broadcaster Pledges Legal Defence
UK Says U.S. Tech Deal Talks Still Active Despite Washington’s Suspension of Prosperity Pact
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
UK Boosts Protection for Jewish Communities After Sydney Hanukkah Attack
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
UK Economy Falters Ahead of Budget as Growth Contracts and Confidence Wanes
Australia Approves Increased Foreign Stake in Strategic Defence Shipbuilder
×