Berkshire's cash soars to record $325 billion

Berkshire Hathaway cut Apple stake by 25% in Q3, building cash reserves to $325.2 billion amid “risk-off” concerns.

NEW YORK:

Warren Buffett and Berkshire Hathaway extended their retreat from stocks in the third quarter, further slashing their holdings in Apple and boosting cash to a record $325.2 billion.

In its quarterly report on Saturday, Berkshire said it sold about 100 million, or 25%, of its Apple shares over the summer, ending with about 300 million. Berkshire has now sold more than 600 million of the iPhone maker's shares in 2024, though Apple remained its largest stock holding, at $69.9 billion.

It sold $36.1 billion of stock overall, including several billion dollars of Bank of America shares, and bought just $1.5 billion, making the quarter the eighth straight where Berkshire was a net seller of stocks.

Berkshire did not repurchase any of its own stock, the first time that happened since the second quarter of 2018, suggesting that Buffett does not even view shares of his $975 billion conglomerate as a bargain.

Cathy Seifert, an analyst at CFRA Research, said the cash buildup could be a warning sign. "Berkshire is a microcosm of the broader economy," Seifert said. "It's hoarding cash suggests a 'risk-off' mindset."