Warren Buffett’s Berkshire Hathaway’s third-quarter operating earnings fell more than 6% to $10.09 billion, due to weakness in the company’s insurance underwriting division. The company also reported a significant reduction in its stake in Apple, its largest stock holding, selling an additional 100 million shares. This marks a 67.2% decrease in Berkshire’s Apple position from last year, leaving it with about 300 million shares.
The company’s cash reserves rose to a record $325.2 billion, up from $276.9 billion in the previous quarter. This increase reflects both the operating income generated and Buffett’s strategic divestments. Berkshire was a net seller of stocks in the quarter, offloading a total of $36.1 billion in publicly traded stocks, largely shares of Apple and Bank of America.
In an unusual move, Berkshire stopped share buybacks during the quarter, in contrast to previous periods in which the company had bought back its own shares. Buffett’s decision appears to be influenced by the high price of Berkshire’s shares, which he has indicated will only buy them back when he deems them undervalued.
Apple’s reduced stake surprised some investors, especially since Buffett has often praised the tech giant’s value. Analysts suggest this shift may reflect Buffett’s growing caution amid economic uncertainties. Despite the earnings decline, Berkshire’s diversified portfolio – spanning insurance, railroads and utilities – continues to position it as one of the most resilient companies on the market.