Berkshire Hathaway’s stock sales in Q2 2024 reached $75.5 billion, pushing this year,s total sales past $ 90 billion
Cash reserves rose to $276.9 billion due to extensive stock sales, showing Buffett’s cautious investment strategy.
Due to the higher stock valuation, the company's net income decreased by 15% even though its major earning operations increased.
For the second quarter of 2024, Berkshire Hathaway, under the leadership of Warren Buffett, recorded a net stock sales of around $75.5 billion. Given that the corporation is still selling more stocks than it is purchasing, this brings the year's total stock sales to $90 billion. In just three months, Berkshire’s cash reserves increased from $189 billion to $276.9 billion, mainly due to these sales.
Buffett's $75.5B Stock Sell-Off as Berkshire's Earnings Rose
The increased selling trend in the last quarter included reductions in stakes, such as the determination of its position in Bank of America over 12 following days. Buffett's alarming approach appears to be driven by concerns over high stock market valuations and economic uncertainties
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Despite the low stock sales, Berkshire Hathaway's operating earnings rose 15% to $11.6 billion, as this was fueled by strong performance in its auto insurance unit, Geico. This increase contrasts with a 15% drop in net income, which fell to $30.34 billion from $35.91 billion .This inturn was affected by the rising stock prices that boosted the value of Berkshire's investment including its stake in Apple.
Buffett Is Cautious on Investments: Berkshire's $345M Buyback
Buffett, who will turn 94 later this month, has largely focused on capital deployment. He stated at Berkshire's annual meeting in May that high prices are limiting his willingness to invest despite having ample cash reserves.
In addition to the stock sales, Berkshire Hathaway repurchased only $345 million of its own shares in the second quarter , which is less than the $2 billion repurchased in each of the previous two quarters. The company continues to hold a minimum cash reserve of $30 billion, though it frequently allows this reserve to grow when attractive investment opportunities are lacking.
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