Buffett's Strategic Shift: A Berkshire Billion-Dollar Retreat

Berkshire Hathaway reduced its stock investments significantly, particularly in Apple, and increased its cash reserves to a record $325.2 billion. The company's quarterly operating profit fell by 6% due to higher insurance underwriting liabilities and currency losses, despite successes in other business areas such as Geico and BNSF railroad.

In the third quarter, Warren Buffett's Berkshire Hathaway made substantial changes to its investment strategy by cutting stock holdings, most notably Apple shares, and amassing a record $325.2 billion in cash. Additionally, the conglomerate documented a 6% decline in quarterly operating profit, mainly due to heightened insurance underwriting liabilities and unfavorable currency exchange impacts.

Despite these challenges, Berkshire performed well in other sectors. Profit increased at Geico, benefiting from reduced accident claims and expenses, while BNSF railroad saw gains through increased shipment of consumer goods. Moreover, Berkshire Hathaway Energy improved its bottom line by lowering operational costs.

Through the summer, Berkshire sold approximately 100 million Apple shares, concluding with holdings of about 300 million. Overall, the firm has offloaded in excess of 600 million Apple shares in 2024, though it remains Berkshire's largest stock position. The firm sold $36.1 billion in stock this quarter, with Apple and Bank of America comprising significant portions.

(With inputs from agencies.)