Berkshire's Q3 Earnings Fall 6%; Cash Hits Record $325B as It Sells 100M Apple Shares

Nov 2, 2024, 12:42 PM

Warren Buffett's Berkshire Hathaway reported lower third-quarter profits as insurance underwriting earnings slumped, with operating earnings falling 6% year over year to $10.09 billion. The conglomerate sold $36.1 billion of equity securities during the quarter while purchasing $1.5 billion, resulting in a substantial increase in its cash reserves to an all-time high of $325.2 billion, up from $276.9 billion at the end of the second quarter. Berkshire Hathaway significantly reduced its stake in Apple Inc., selling approximately 100 million shares in the third quarter, which represents about 25% of its holdings in the tech giant. The market value of Berkshire's Apple position declined to approximately $69.9 billion as of September 30, down from $84.2 billion at the end of the previous quarter, even though Apple stock appreciated by 10.75% during the quarter. The company continues to de-risk its balance sheet, increasing its holdings in Treasury bills to $291.6 billion. Year-to-date stock buybacks totaled $2.9 billion, compared to approximately $7 billion in 2023. Berkshire's insurance float increased by $5 billion to $174 billion.