Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Economy

Berkshire’s cash soars to $325 billion as Buffett sells Apple, BofA; operating profit falls

admin by admin
November 2, 2024
in Economy
0
Berkshire’s cash soars to $325 billion as Buffett sells Apple, BofA; operating profit falls
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter

By Jonathan Stempel

(Reuters) -Warren Buffett and Berkshire Hathaway (NYSE:BRKa) extended their retreat from stocks in the third quarter, slashing their holdings in Apple and boosting cash to a record $325.2 billion.

Berkshire also reported a 6% decline in quarterly operating profit, largely the result of higher insurance underwriting liabilities including for Hurricane Helene, and currency losses from a strengthening U.S. dollar.

These offset improved profitability at the Geico car insurer, where accident claims and expenses fell. Profit also rose at the BNSF railroad, which shipped more consumer goods, and Berkshire Hathaway Energy, where operating expenses declined.

In its quarterly report on Saturday, Berkshire said it sold about 100 million, or 25%, of its Apple shares (NASDAQ:AAPL) over the summer, ending with about 300 million.

It has now sold more than 600 million of the iPhone maker’s shares in 2024, though Apple remained Berkshire’s largest stock holding, at $69.9 billion.

The sales comprised a large portion of the $36.1 billion of stock, including several billion dollars of Bank of America shares, that Berkshire sold in the quarter.

Buffett said in May that he expected Apple to remain Berkshire’s largest stock investment, but selling made sense because the 21% federal tax rate on the gains would likely grow.

Berkshire bought just $1.5 billion of stock in the quarter, the eighth straight where it was a net seller of stocks.

It also repurchased none of its own stock, suggesting that Buffett doesn’t view even his own company’s shares as a bargain.

HELENE, MILTON

Operating profit from Berkshire’s dozens of businesses fell to $10.09 billion, or about $7,019 per Class A share, from $10.76 billion a year earlier.

Insurance underwriting profit fell 69%, dented by rising claims, $565 million of losses from Helene, and a bankruptcy court settlement related to defunct talc supplier Whittaker Clark & Daniels.

This more than offset a near doubling of underwriting profit at Geico.

Berkshire also projected $1.3 billion to $1.5 billion of pre-tax losses in the fourth quarter from Hurricane Milton, which slammed into Florida in October.

Net income totaled $26.25 billion, or $18,272 per Class A share, compared with a loss of $12.77 billion, or $8,824 per share, a year earlier when falling stock prices reduced the value of Berkshire’s investments.

Buffett has said operating results better reflect Berkshire’s performance.

Accounting rules require Berkshire to report unrealized investment gains and losses when it reports net income, adding volatility that Buffett counsels investors to ignore.

Buffett, 94, has led Berkshire since 1965, and is expected to eventually transfer leadership to Vice Chairman Greg Abel, 62.

The Omaha, Nebraska-based conglomerate’s businesses also include Berkshire Hathaway Energy, many industrial and manufacturing companies, a big real estate brokerage, and retail businesses such as Dairy Queen and Fruit of the Loom.

This post appeared first on investing.com

Previous Post

Nasdaq Composite index forms a risky pattern, pointing to a reversal

Next Post

How to navigate the Fed’s pre-decision blackout period, according to Wells Fargo

admin

admin

Next Post
How to navigate the Fed’s pre-decision blackout period, according to Wells Fargo

How to navigate the Fed’s pre-decision blackout period, according to Wells Fargo

Trending News

Long AER: bullish breakout signals uptrend as strong support at $93 reinforces continued price momentum

Long AER: bullish breakout signals uptrend as strong support at $93 reinforces continued price momentum

November 19, 2024
Boeing fine-tunes job cuts as major buyer slams 777X jet delay

Boeing fine-tunes job cuts as major buyer slams 777X jet delay

October 14, 2024
Mubadala to take Canada’s CI Financial private in about $8.7 billion deal

Mubadala to take Canada’s CI Financial private in about $8.7 billion deal

November 25, 2024
Subscribe to Insightful Word


    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025
    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    June 26, 2025
    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    June 26, 2025

    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025

    Latest News

    • S&P 500 nears record high despite headwinds: key drivers behind the surprise rally
    • Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high
    • S&P 500 nears record high as Wall Street opens higher amid tech momentum

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.