Record $325 billion: Buffett’s fund goes to cash
5 November 08:57
Berkshire Hathaway, Warren Buffett‘s investment fund, significantly increased its cash reserves to a record $325.2 billion in the third quarter of 2024, following a significant share sale. This was reported by Komersant ukrainskyi with reference to CNN.
The company sold about 100 million shares of Apple, which is 25% of all its assets in the tech giant, leaving it with about 300 million Apple shares. In total, since the beginning of 2024, Berkshire has sold more than 600 million Apple shares, but even after that, Apple remains the company’s largest asset at $69.9 billion.
Berkshire also sold other securities, including Bank of America shares, which totaled $36.1 billion for the quarter. Buffett explained these actions by a possible increase in federal income tax, which is currently 21%. It is noted that the company acquired only $1.5 billion of new shares in the third quarter, which is the eighth consecutive quarter in which it remained a net seller of shares. Buffett also did not repurchase any Berkshire shares, which indicates his cautious attitude to the market’s assessment of the company’s stock value.
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Berkshire’s operating profit for the third quarter decreased by 6% to $10.09 billion, due to an increase in insurance liabilities, in particular payments due to losses from Hurricane Helen and foreign exchange losses amid the strengthening of the US dollar. Despite this, the Geico unit showed an increase in profit, thanks to a decrease in the number of claims and expenses. Also, the profits of the railroad company BNSF, which transported more consumer goods, and Berkshire Hathaway Energy increased due to lower operating costs.
In addition, Berkshire forecasts a loss of $1.3 to $1.5 billion in the fourth quarter due to Hurricane Milton, which hit Florida in October.
The company’s net income reached $26.25 billion, which corresponds to $18,272 per Class A share, compared to a loss of $12.77 billion in the same period last year, when falling stock prices reduced the value of the company’s investments.
Buffett, now 94 years old, has been the head of Berkshire since 1965, and it is expected that in the future the company will be led by Vice Chairman Greg Abel.
