Berkshire Hathaway's Strategic Shift: A Record Cash Hoard amid Declining Profits

Warren Buffett's Berkshire Hathaway sold Apple shares and grew its cash reserves to $325.2 billion in the third quarter. Operating profits fell 6% to $10.09 billion with Berkshire not repurchasing its stock, hinting at Buffett's cautious market outlook.

In a significant move reflecting strategic caution, Warren Buffett's investment powerhouse, Berkshire Hathaway, has sold a substantial portion of its Apple holdings, increasing its cash reserves to an unprecedented $325.2 billion. This decision marks a notable retreat from the stock market, coinciding with a dip in the company's operational income.

The quarterly report, released on Saturday, unveiled a reduction in Berkshire's operating profit by 6% to $10.09 billion. The decline spans across its vast array of businesses, including BNSF railroad and Geico car insurance. Notably, no share buybacks of its own stock were deemed worthwhile by Buffett in this quarter, highlighting the veteran investor's cautious approach.

Despite a dip in operating profits, the company's net income surged to $26.25 billion, contrasting sharply with last year's loss of $12.77 billion. This turnaround is attributed to market factors affecting the valuation of its investments, with the stock sales and prudent cash strategy painting a conservative picture of Berkshire's future market engagements.

(With inputs from agencies.)