Berkshire Hathaway's "cash vault" surpassed the $300 billion mark in the third quarter of 2024, as billionaire Warren Buffett continued to sell shares and not buy them back.
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| The "cash vault" continues to increase as billionaire Warren Buffett's investment group sells large stakes in Apple and Bank of America. (Source: Reuters) |
Berkshire Hathaway's cash pile rose to a record $325.2 billion at the end of September, up from $276.9 billion in the second quarter of 2024, according to an earnings report released on November 2.
The cash pile continued to grow as the investment conglomerate sold large stakes in Apple and Bank of America. In the third quarter of 2024, Berkshire reduced its Apple holdings by about 25%, marking the fourth consecutive quarter the conglomerate has reduced its investment.
Berkshire has also made more than $10 billion off its Bank of America stake since mid-July. Last quarter, Buffett’s conglomerate reduced its holdings by $36.1 billion.
Meanwhile, Berkshire did not repurchase any shares in the quarter. Repurchases have slowed since the beginning of the year when Berkshire's stock price hit a record high. The conglomerate repurchased just $345 million of shares in the second quarter of 2024, down from $2 billion per quarter in the previous two quarters.
Berkshire's Class A shares have risen 25% year to date, outpacing the S&P 500's 20.1% gain. The investment conglomerate's market capitalization topped $1 trillion in the third quarter.
However, Berkshire's operating profit last quarter stood at $10.1 billion, down about 6% from the same period last year.
Buffett's cautious stance comes as stock markets have surged this year on expectations of a soft economic landing, as inflation eases and the Federal Reserve continues to cut interest rates.
However, many prominent investors, such as Mr. Paul Tudor Jones, have expressed concerns about the growing budget deficit, and commented that neither of the two US presidential candidates will cut spending to solve this problem.
Source: https://baoquocte.vn/kho-tien-tap-doan-berkshire-hathaway-cua-ty-phu-warren-buffett-khung-den-co-nao-292452.html
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