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Berkshire's Cash Hits $325B as Buffett Cuts Apple Stake by 25%, Halts Buybacks

Nov 2, 2024, 02:27 PM

Warren Buffett’s Berkshire Hathaway Inc. reported a record cash reserve of $325.2 billion at the end of the third quarter of 2024, an increase of $48 billion from the previous quarter and $136 billion over the past two quarters. The conglomerate sold $36.1 billion of equity securities during the quarter while purchasing only $1.5 billion, significantly boosting its cash holdings. Notably, the company reduced its stake in Apple Inc. by approximately 25%, selling about 100 million shares and bringing its holdings down to about 300 million shares, valued at $69.9 billion from $84.2 billion. Over the past year, Berkshire Hathaway has reduced its Apple stake by two-thirds. Operating earnings for the third quarter fell 6% year-over-year to $10.09 billion, while net income was reported at $26.25 billion. The decline in operating earnings was driven by a decrease in insurance underwriting income. Berkshire Hathaway halted its share repurchase program during the quarter—the first time since 2018 that it did not buy back its own stock. The company's substantial cash reserves now exceed the market capitalization of all but 27 public companies globally, positioning Berkshire Hathaway to capitalize on future investment opportunities. The company also holds $288 billion in U.S. Treasury bills, indicating a cautious investment stance.