- Warren Buffett's Berkshire Hathaway reported its profit declined in the third quarter while its cash pile ballooned to a record of more than $320 billion.
- Berkshire trimmed its stakes in both Apple and Bank of America, bringing its total proceeds from stock sales this year to about $133 billion.
- Berkshire paused stock buybacks last quarter as its share price surged to a record high.
Berkshire Hathaway (BRK.A; BRK.B) on Saturday reported its profit fell in the third quarter while its cash pile swelled to a record as it trimmed its stakes in Apple (AAPL) and Bank of America (BAC).
Berkshire reported third-quarter operating earnings of $10.1 billion, down from $10.7 billion a year ago and $11.6 billion in the prior quarter.
Berkshire's Cash Stash Swells to Record
The conglomerate's cash pile ballooned to a record $320.3 billion from $271.5 billion in the second quarter. The vast majority of Berkshire’s cash ($288 billion) is invested in short-term Treasury bills.
Investors watch the firm's cash hoard closely for its potential as “dry powder,” money that can be invested in businesses that meet Berkshire’s value-focused acquisition and investment strategy.
Berkshire paused share repurchases in the quarter. Buffett has touted the benefits of repurchases in the past, writing in his 2022 letter to shareholders: “Gains from value-accretive repurchases, it should be emphasized, benefit all owners – in every respect.” But Buffett is famously thrifty, and the price of Berkshire shares surged to a record high in the quarter.
Buffett Sells Apple, Bank of America Stocks
The value of Berkshire’s equity portfolio declined to $271.7 billion from $284.9 billion in the prior quarter. Berkshire has aggressively trimmed its equity positions this year to take profits from a buoyant stock market. The firm has sold $133 billion of stock so far this year, compared with just $33 billion in the first nine months of 2023...
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