Warren Buffett’s conglomerate, Berkshire Hathaway, has reached a record cash balance of $325.2 billion, driven by significant stock sales and a slowdown in share buybacks. The company’s massive cash reserve grew 16% from the previous quarter, as Buffett continued to shed investments.
Berkshire sold about a quarter of its Apple stake in the third quarter, following three consecutive quarters of downsizing this position. The sale of Bank of America shares has generated over $10 billion for the company since mid-July. Total stock sales by Berkshire in the third quarter exceeded $36.1 billion.
Notably, Berkshire did not repurchase any company shares during this period, as its shares have outperformed the broader market and reached record highs. The conglomerate’s Class A shares have risen 25% year-to-date, eclipsing the S&P 500’s 20.1% gain.
Berkshire’s operating earnings were $10.1 billion for the third quarter, down 6% from the previous year due to weak insurance underwriting. This figure was below analyst estimates. Buffett’s conservative approach comes as investors worry about the growing fiscal deficit and potential tax rate hikes.
Source: https://www.cnbc.com/2024/11/02/berkshire-hathaways-cash-fortress-tops-300-billion-as-buffett-sells-more-stock-freezes-buybacks.html