Berkshire Cash Hits Record $325B as Buffett Sells Apple, Operating Profit Falls 6%

Nov 2, 2024, 12:59 PM

Warren Buffett's Berkshire Hathaway reported its third-quarter 2024 earnings, revealing a significant increase in cash reserves to a record $325.2 billion, up from $276.9 billion at the end of the second quarter. The company achieved this cash accumulation by selling $36.1 billion of equity securities while purchasing only $1.5 billion during the quarter. Notably, Berkshire sold approximately 25% of its holdings in Apple Inc., reducing its stake by about 100 million shares to 300 million shares. Berkshire's Apple holdings are now valued at around $69.9 billion, down from $84.2 billion at the end of the second quarter and down by two-thirds from last year. This marks the fourth consecutive quarter in which Berkshire has reduced its Apple stake. Additionally, Berkshire sold billions of dollars in Bank of America stock and did not execute any share buybacks in the quarter, the first time since 2018 that it has refrained from repurchasing its own stock. Berkshire's operating profits fell 6% year-over-year to $10.09 billion, primarily due to a drop in insurance underwriting income.