London Daily

Focus on the big picture.
Friday, Sep 11, 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
English Councils to Gain Power to Introduce Tourist Taxes by 2028
Kemi Badenoch Reshuffles Conservative Shadow Cabinet
Firefighters Make Progress Containing Major Wildfires in South Wales
John Lewis Partnership Reports £124 Million Loss
Study Says UK AI Data Centres Will Create Only a Quarter of Forecast Jobs
UK Government Considers Higher Industrial Water Prices Amid Supply Pressures
Andy Burnham Holds First Call With Donald Trump as UK Prime Minister
NHS Records Busiest Summer on Record as Heatwaves Drive Hospital Admissions
Home Secretary Orders Police Crackdown on Far-Right Anti-Migrant Vigilantes
UK Supreme Court Rules Northern Ireland Religious Education Curriculum Breaches Human Rights Standards
Markets Price in Four Bank of England Rate Rises by Next Summer
House of Commons Prepares Free Vote on Assisted Dying Bill
UK Government Bans Trade With Israeli Settlements in Occupied Territories
UK Economy Grows 0.4% in July as Artificial Intelligence Investment Supports Expansion
Andy Burnham Becomes UK Prime Minister After Keir Starmer Resigns
John Lewis Partnership Loss Widens to £124 Million
UK Government to Put White Working-Class Social Mobility at Centre of Equality Policy
McLaren Plans £450 Million Technology Investment Creating 1,000 UK Jobs
UK Chancellor Faces Calls for Wealth Taxes and Public Ownership in Autumn Budget
English Mayors to Gain Powers to Impose Uncapped Overnight Tourist Taxes
JPMorgan’s Jamie Dimon Warns UK Government Against Bank Windfall Taxes
UK Air Traffic Control Outage Cancels More Than 2,000 Flights
UK Imposes Trade Ban on Israeli Settlements in the West Bank
UK Borrowing Costs Surge as Middle East Tensions Push Long-Term Gilt Yields to Highest Since 1998
Buckingham Palace Says Prince Harry and Meghan Will Not Resume Official Royal Duties
UK Treasury Faces Calls to Scrap £100,000 Childcare Support Threshold
Trades Union Congress Urges Labour Government to Rewrite Migration Policy
Riot Police Deployed After Anti-Migrant Protests Turn Violent in Portsmouth
UK Considers Replacing Some Disability Cash Payments With Direct Services
JPMorgan’s Jamie Dimon Warns UK Chancellor Against Higher Banking Taxes
UK Announces New Sanctions Targeting Israeli Settlements in West Bank
Metropolitan Police Investigate Alleged Illegal Donations to Reform UK
UK Charges Wiltshire Man With Assisting Russian Intelligence
UK Orders Urgent Review After Air Traffic Failure Cancels More Than 2,000 Flights
Merz Rebukes AfD Expansion in Saxony-Anhalt
King Charles Confirms Prince Harry and Meghan Will Remain Private Citizens
Labour Selects Former Child Refugee for By-Election in Keir Starmer’s Former Seat
Foreign Private Equity Accelerates Takeovers of London-Listed Industrial Companies
NHS Maternity Care Faces Scrutiny Over Support for Mothers After Caesarean Births
BBC Warns Staff Strikes Are Likely Amid Job Cuts and Programme Cancellations
English Housing Affordability Improves to Best Level in More Than a Decade
UK Health Commission Proposes Framework for Wider AI Adoption Across NHS
Labour Faces Pressure for Wealth Tax Ahead of Autumn Budget
Metropolitan Police Open Criminal Investigation Into Alleged Foreign Donations to Reform UK
UK Police Deploy Riot Officers After Anti-Immigration Unrest in Portsmouth and Dover
UK Defends Sanctions on Israeli Settlements Despite Diplomatic Retaliation
UK Air Traffic Control Failure Cancels More Than 1,000 Flights and Disrupts 65,000 Passengers
Compass Urges £10 Million Wealth Tax and Public Ownership Ahead of UK Autumn Budget
UK Government’s Devolution Plans Face House of Lords Scrutiny
Maldives Seeks New Chagos Sovereignty Talks With UK Prime Minister Andy Burnham
×