Warren Buffett’s Berkshire Hathaway saw its cash reserves soar to a record $325.2 billion in the third quarter.
OOPS! Berkshire Hathaway's cash pile hit a fresh ATH at $325.2bn in Q3 2024 as Warren Buffett continued to refrain from major acquisitions while trimming some of his most significant equity stakes. Berkshire once again trimmed its holdings in Apple: The firm’s stake in the iPhone… pic.twitter.com/1J0eZKKaF4
— Holger Zschaepitz (@Schuldensuehner) November 2, 2024
The increase was driven by Buffett’s continued stock-selling spree, including significant reductions in some of Berkshire’s largest holdings like Apple and Bank of America. Berkshire sold about 100 million Apple shares, or 25%, over the summer, ending with approximately 300 million shares.
Berkshire Hathaway will release its Q3 10-Q tomorrow morning. As with last quarter, I fully expect to see a further MATERIAL reduction in its Apple investment. At 36x 2024 earnings, little revenue growth over the last two years, perhaps 6-7% prospective long-term growth on an… pic.twitter.com/xfLVcxL5Vs
— Christopher Bloomstran (@ChrisBloomstran) November 1, 2024
This brings the total to more than 600 million Apple shares sold in 2024, though it remained Berkshire’s largest stock holding at $69.9 billion. The company also offloaded several billion dollars worth of Bank of America shares. Overall, Buffett shed $36.1 billion in stocks during the quarter, marking the eighth consecutive quarter as a net seller.
Berkshire Hathaway Inc.’s cash pile reached $325.2 billion in the third quarter, a record for the conglomerate, as Warren Buffett continued to refrain from major acquisitions while trimming some of his most significant equity stakes.https://t.co/Wm3eaRnoMU
— menaka doshi (@menakadoshi) November 2, 2024
Berkshire’s record cash reserves increase
Despite the stock market’s gains this year, Berkshire did not repurchase any of its own shares during the period. Repurchase activity had already slowed earlier in the year as the company’s stock outperformed the broader market, reaching record highs.
Berkshire’s operating profit, which encompasses profits from its fully-owned businesses, fell 6% to $10.09 billion.
Despite the decline in Berkshire Hathaway’s operating earnings due to insurance losses, there were some positive developments. Warren Buffett sold more of its stake in Apple, sending its cash hoard above $320 billion. $BRKA $BRKB $AAPLhttps://t.co/K3imigAcmi
— Bill Stone (@ewstone) November 2, 2024
This decline was largely due to higher insurance underwriting liabilities, including losses from Hurricane Helene, and currency losses from a strengthening U.S. dollar. These costs offset improved profitability at Geico, where accident claims and expenses fell, and increased profits at BNSF railroad and Berkshire Hathaway Energy.
Buffett, 94, has hinted that he was selling some stock holdings on the belief that tax rates on capital gains could be raised to help manage the growing fiscal deficit. The investor is expected to eventually transfer leadership of Berkshire to Vice Chairman Greg Abel, 62.
