Billionaire Warren Buffett compares cash to oxygen but says it's not a good asset.

Berkshire Hathaway's Warren Buffett shares his perspective that cash is not a good asset, likening it to oxygen. This insight provides context for his views on investment strategies and wealth management.

Warren Buffett offered a candid assessment of cash as an asset class, comparing it to oxygen — essential for survival but not something you want to hold in excess. "You do need oxygen, and if you're ever without it for four or five minutes, you will learn," Buffett said. "Cash is that way. You always need to have it available."

However, the BRK.B chairman was clear that cash is "not a good asset," emphasizing that Berkshire Hathaway will "never prefer ownership of cash-equivalent assets over the ownership of good businesses". The comment comes with particular weight given that Berkshire reported more than $370 billion in cash equivalents at year-end 2025, largely held in Treasury bills.

Buffett's remarks provide context for his investment philosophy as he transitions out of the CEO role — he stepped down at the end of 2025. His comments suggest frustration at not finding adequately large opportunities to deploy Berkshire's massive cash reserves, while reinforcing the message that long-term business ownership remains his preferred path to wealth creation.