Berkshire’s Cash Soars To $325 Billion As Buffett Sells Apple, Bank of America Stocks

Warren Buffett and Berkshire Hathaway further reduced their stock holdings in the third quarter, cutting their stake in Apple and increasing cash reserves to a record $325.2 billion, Reuters reported.

Berkshire also reported a 6% decline in quarterly operating profit, largely due to increased insurance underwriting liabilities. I Photo: Berkshire Hathaway Home Services

Berkshire also reported a 6% decline in quarterly operating profit, largely due to increased insurance underwriting liabilities, including those related to Hurricane Helene, and currency losses from a strengthening U.S. dollar.

These offset improved profitability at Geico, where accident claims and expenses fell. Profit also rose at the BNSF railroad, which shipped more consumer goods, and Berkshire Hathaway Energy, where operating expenses declined, CNN also reported.

In its latest quarterly report, Berkshire disclosed that it sold about 100 million, or 25%, of its Apple shares over the summer, leaving it with approximately 300 million shares.

It has now sold more than 600 million shares of the iPhone maker in 2024, although Apple remains Berkshire’s largest stock holding, valued at $69.9 billion. The sales made up a significant portion of the $36.1 billion in stock, including several billion dollars of Bank of America shares, that Berkshire sold in the quarter.

Buffett had said in May that he expected Apple to remain Berkshire’s largest stock investment, but the sales made sense due to the 21% federal tax rate on the gains, which may increase in the future.