Berkshire Hathaway, led by Warren E. Buffett, has cut its holdings in Apple and Bank of America while increasing cash reserves to a record high in the third quarter. The conglomerate reported a 6% decline in quarterly operating profit due to higher liabilities for its insurance companies, including losses from Hurricane Helene.
Berkshire sold about 100 million Apple shares, or 25%, during the summer, leaving it with about 300 million shares worth $69.9 billion. The sales were made to avoid a 21% federal tax on capital gains, which Mr. Buffett expected would increase.
In contrast, Berkshire bought only $1.5 billion of stock in the quarter, marking its eighth consecutive net sale of stocks. Insurance underwriting profit fell 69%, while Geico’s accident claims and expenses decreased, resulting in a near doubling of underwriting profit at the car insurer.
The company also projected $1.3 billion to $1.5 billion in pretax losses in the fourth quarter from Hurricane Milton, which hit Florida in October. Net income for Berkshire totaled $26.25 billion compared to a loss of $12.77 billion in the same period last year.
Mr. Buffett plans to eventually transfer leadership to vice chairman Greg Abel, 62. The conglomerate owns and operates various businesses, including energy, industrial companies, real estate, and retail businesses like Dairy Queen and See’s Candies.
Source: https://www.nytimes.com/2024/11/02/business/berkshire-hathaway-warren-buffett.html