Berkshire's Bold Moves: Cashing Out and Hoarding Billions

Warren Buffett's Berkshire Hathaway significantly reduced its Apple holdings, adding to a cash reserve of $325.2 billion. The firm reported a decline in operating profits, while its diverse businesses faced mixed fortunes amid rising stock valuations and speculative economic conditions.

In a strategic retreat, Warren Buffett's Berkshire Hathaway further reduced its stock holdings in the third quarter, notably cutting its stake in Apple and swelling its cash reserves to $325.2 billion, a record high. This move reflects a 'risk-off' sentiment amid volatile market conditions.

The renowned conglomerate divested 25% of its Apple shares, amounting to roughly 100 million, over the summer, yet Apple remains its largest holding, valued at $69.9 billion. Despite significant sell-offs, including Bank of America shares, Berkshire only acquired a modest $1.5 billion in new stocks.

Berkshire announced an 8th consecutive quarter as a net seller of stocks, and of particular note, abstained from any stock buybacks for the first time since 2018. With these careful maneuvers, analysts speculate the company is preparing for potential market corrections or aiming for expansive acquisitions.

(With inputs from agencies.)