Warren Buffett's Berkshire Hathaway’s third-quarter operating earnings dropped by over 6% to US$10.09 billion, driven by weakness in the company's insurance underwriting division. The company also reported a significant reduction in its stake in Apple, its largest equity holding, selling an additional 100 million shares. This marks a 67.2% decrease in Berkshire’s Apple position since last year, leaving it with around 300 million shares.
The company’s cash reserves have risen to a record US$325.2 billion, up from US$276.9 billion in the previous quarter. This increase reflects both the operating income generated and Buffett’s strategic divestments. Berkshire was a net seller of stocks in the quarter, offloading a total of US$36.1 billion in publicly traded shares, largely Apple and Bank of America stock.
In an unusual move, Berkshire halted its share buybacks during the quarter, contrasting with previous periods when the company repurchased its own shares. Buffett’s decision appears influenced by the elevated price of Berkshire’s stock, which he has indicated he will only repurchase when he deems it undervalued.
The reduced Apple stake surprised some investors, particularly as Buffett has often lauded the tech giant’s value. Analysts suggest this shift could reflect Buffett’s growing caution amid economic uncertainties. Despite the earnings dip, Berkshire’s diverse portfolio — spanning insurance, railroads, and utilities — continues to position it as one of the most resilient firms in the market.
