Warren Buffett’s Berkshire Hathaway has significantly increased its cash reserves to a record $325.2 billion, following a series of stock sales including Apple (NASDAQ:) and Bank of America (NYSE: ). The company’s latest quarterly report, released Saturday, revealed that about 100 million shares of Apple stock were sold, along with a significant number of Bank of America shares.
The report also highlighted that Berkshire Hathaway did not repurchase its own shares during the third quarter, indicating that Buffett may not view the company’s shares as undervalued at the moment.
Berkshire Hathaway’s operating profit fell 6% to $10.09 billion, or about $7,019 per Class A share. This was down from $10.76 billion. declared at the same period the previous year.
Despite the drop in operating profit, the company’s bottom line showed a stark contrast, totaling $26.25 billion, or $18,272 per Class A share. This is a significant turnaround from the loss of $12.77 billion, or $8,824 per share, recorded a year earlier, which was attributed to falling stock prices that impacted the value of Berkshire’s investment portfolio.
The operating profit figure comes from the combined profits of Berkshire’s diverse portfolio of businesses, which include BNSF railroad and Geico auto insurance. The decline in operating profit reflects the challenges some of these companies face in the current economic climate.
The increase in Berkshire’s cash reserves could position the company to take advantage of potential investment opportunities or to strengthen its holdings in the face of economic uncertainty. The Apple and Bank of America stock sales, as well as the decision not to repurchase Berkshire shares, suggest a strategic shift by Buffett and his team in managing Berkshire’s vast investment portfolio. the company.
Reuters contributed to this article.
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