OMAHA, Neb. — Warren Buffett now holds over $325 billion in cash after a year of selling off significant amounts of shares in both Apple and Bank of America. This trend has contributed to a steady flow of profits from the diverse operations of Berkshire Hathaway, despite a lack of substantial acquisitions on the horizon.
During the third quarter, Berkshire disclosed that it had further reduced its investment in Apple, continuing a trend from the previous quarter where its holdings were already halved. The remaining stake in Apple, valued at $69.9 billion by the end of September, still stands as Berkshire’s largest investment, albeit significantly diminished from its worth of $174.3 billion at the end of last year.
On Saturday, Berkshire reported its third-quarter profits soared to $26.25 billion, equating to $18,272 per Class A share driven by investment gains. In comparison, the same period last year saw the company facing a loss of $12.77 billion, or $8,824 per Class A share, largely due to unrealized investment losses.
Buffett has often advised investors to focus on Berkshire’s operating earnings for a clearer picture of how its owned businesses are performing, as these figures omit investments. According to this measure, operating earnings fell around 6% to $10.09 billion, translating to about $7,023.01 per Class A share, compared to last year’s $10.8 billion, or $7,437.15 per Class A share.
FactSet Research had estimated that Berkshire would report operating earnings of approximately $7,335.11 per Class A share.
In terms of revenue, Berkshire’s figures remained relatively stable at $92.995 billion, slightly down from $93.21 billion a year prior. This revenue figure exceeded the $92.231 billion that three analysts had predicted, suggesting a strong positioning for the conglomerate in the business landscape.
Berkshire Hathaway’s extensive portfolio includes numerous insurance entities such as Geico, the BNSF railroad, various major utility providers, and a diverse range of retail and manufacturing enterprises, including well-known brands like Dairy Queen and See’s Candy.