In Q3, Berkshire Hathaway's massive cash pile reached $300 billion as Warren Buffett continued to liquidate and did not buy back shares.
According to the financial report released on November 2, Omaha-based Berkshire Hathaway reported cash increasing from $276.9 billion in Q2 to a record $325.2 billion by the end of September.
This massive cash pile continues to grow from Omaha's Oracle selling a large portion of his shares. Specifically, Apple and Bank of America are two names Buffett chose to reduce. Berkshire sold about a quarter of its stake in Apple in Q3, marking the fourth consecutive quarter that the company reduced its investment in the tech giant. Meanwhile, since mid-July, Berkshire has brought in over $10 billion from selling its long-term investment in Bank of America.
Overall, this seasoned investor continues to "unload" with a total value of $36.1 billion in stocks in Q3.
Berkshire also did not buy back any company stocks during the sell-off. The stock buyback activity slowed down early this year as Berkshire's shares outperformed the broader market, reaching record highs.
The company only bought back $345 million of its own stock in Q2, significantly lower than the $2 billion bought back in each of the previous quarters. The company stated that they would repurchase shares when Chairman Buffett "believes that the buyback price is below Berkshire's intrinsic value."
Berkshire's Class A shares have risen 25% this year, outpacing the S&P 500's 20.1% increase year-to-date. The conglomerate surpassed a $1 trillion market capitalization in Q3 when the stock reached an all-time high.
In the third quarter, Berkshire's operating profit totaled $10.1 billion, down about 6% from the previous year due to weak insurance performance. According to FactSet, this figure is slightly lower than analysts' estimates.
Warren Buffett liquidates stocks amid a strong stock market rally in 2024. Investors expect the U.S. economy to have a soft landing as inflation decreases and the Federal Reserve continues to cut interest rates.
Meanwhile, investors are worried about the soaring financial deficit with no presidential candidates willing to cut spending to address the issue. Buffett has previously stated that he would sell some stocks to hedge against rising taxes.
According to CNBC