Berkshire Hathaway Sells $6.1B in Stocks, Amasses Record Cash Reserve

Bassyonni

ago 8 hours

Berkshire Hathaway Sells $6.1B in Stocks, Amasses Record Cash Reserve

Berkshire Hathaway, under the leadership of Warren Buffett, has made significant financial moves in the third quarter of the year. The company sold stocks worth $6.1 billion, continuing a trend of selling that now extends for twelve consecutive quarters. This cautious approach reflects ongoing market uncertainties.

Berkshire Hathaway’s Cash Reserves Reach New Heights

At the end of September 2023, Berkshire Hathaway’s cash and cash equivalents reached an all-time high, totaling $381.6 billion. This surpasses the previous record of $347.7 billion, which was set earlier this year.

Stock Sales and Acquisitions

Berkshire Hathaway sold $12.5 billion worth of stocks.
The company purchased $6.4 billion worth of stocks during the same period.
This indicates a significant net selling of $6.1 billion in stocks.
Over the past three years, the total stock sales have amounted to nearly $184 billion.
Recently, Berkshire Hathaway finalized a $9.7 billion all-cash acquisition of Occidental Petroleum’s petrochemicals division.

Operating Earnings Performance

For the third quarter, Berkshire Hathaway reported a 34% increase in operating profit, rising to $13.5 billion compared to the previous year. This growth is primarily attributed to its diverse units, particularly insurance, railroad, and energy sectors. Insurance underwriting income was particularly notable, surging over 200% to $2.37 billion.

Buffett’s Strategic Decisions

Despite strong financial performance, Buffett has chosen not to engage in share buybacks for the first nine months of 2025. This decision indicates a strategic wait-and-see approach, potentially in anticipation of more favorable investment opportunities.

Stock Rating Overview

Berkshire Hathaway’s Class B stock (BRK.B) currently holds a “Moderate Buy” rating. This rating is based on recent analyst assessments, which include one “Buy” and one “Hold.” The average price target for BRK.B is $536, suggesting a potential upside of 12.24% from current levels.

As Warren Buffett approaches the final months of his tenure as CEO, all eyes are on the next chapter for Berkshire Hathaway under the guidance of his successor, Greg Abel. The company’s strong cash reserves and strategic moves indicate a significant period of transition ahead.