Berkshire Hathaway, founded by billionaire Warren Buffett, now holds a record cash reserve after selling off shares in Apple and Bank of America during the third quarter.
According to the financial report released on November 9, Berkshire Hathaway recorded a 6% drop in operating profit compared to the same period last year, down to $10.09 billion. This decline was primarily due to higher insurance payouts after Hurricane Helene and reduced foreign exchange revenue as the USD strengthened.
Despite this, Berkshire’s cash holdings reached a record high of $325.2 billion. The report indicates that Berkshire sold $36.1 billion in stocks last quarter, including several billion dollars of Bank of America shares, while buying only $1.5 billion in new stocks. This marked the eighth consecutive quarter of net selling for Berkshire, which also did not repurchase any of its own shares.
During the summer, Apple sold about 100 million of its own shares, bringing the total shares sold this year to over 600 million. However, this remains the largest stock investment in Berkshire’s portfolio, valued at nearly $70 billion. Warren Buffett previously expressed his expectation that Apple would continue to be the largest holding in Berkshire’s portfolio.
Berkshire’s insurance profits fell by 69% due to an increase in claims, with losses from Hurricane Helene alone reaching $565 million. Berkshire is expected to spend an additional $1.3 to $1.5 billion on claims following Hurricane Milton, which struck Florida in October.
While Berkshire’s net profit reached $26.25 billion, contrasting with a $12.7 billion loss last year caused by stock market declines impacting its investment portfolio, the company maintains that operating profit is a more accurate measure of its business performance. Berkshire operates in a wide range of sectors, including insurance, railroads, energy, real estate brokerage, retail, and ownership of well-known brands like Dairy Queen and Fruit of the Loom.
