Berkshire Hathaway’s (BRK.A/BRK.B) cash pile has swelled to a record $325.2 billion U.S. as the holding company run by Warren Buffett continues to sell stocks and withhold its own share repurchases.
The Omaha-based company continued to sell its biggest stock holdings in this year’s third quarter, notably Apple (AAPL) and Bank of America (BAC).
Berkshire sold off a quarter (25%) of its remaining stake in Apple, marking the fourth consecutive quarter that it has downsized its holding of the consumer electronics giant.
At the same time, Berkshire Hathaway has earned more than $10 billion U.S. in profits from selling its longtime stake in Bank of America.
In all, Berkshire Hathaway sold $36.1 billion U.S. worth of stocks in Q3, heightening speculation that Buffett sees the market as overvalued and that he expects a correction to occur.
At the same time, Berkshire Hathaway didn’t buyback any of its own stock during the July through September period as the company’s share price hit record highs.
The diversified holding company that owns everything from railroads to furniture stores had bought back $345 million U.S. worth of its own stock in this year’s second quarter.
Berkshire Hathaway reported after-tax operating profits for the third quarter, excluding investment gains and losses, that were down 6% to $10.1 billion U.S.
However, much of that loss was due to currency fluctuations and a weakening U.S. dollar. Adjust for the currency change and Berkshire’s earnings were up 8% to $11.2 billion U.S.
Berkshire also reported a doubling of underwriting profits to $2 billion U.S. at its Geico insurance unit, and profits at the Burlington Northern Santa Fe railroad rose 13% to $1.4 billion U.S.
Berkshire Hathaway Energy, the company’s big utility division, saw a threefold increase in profits to $1.6 billion U.S. during the quarter.
Berkshire Hathaway’s more affordable Class B stock has risen 25% so far in 2024 and currently trades at $452.14 U.S. per share.
The company’s market capitalization surpassed $1 trillion U.S. in this year’s third quarter, becoming the first non-technology company to reach that milestone.
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