Berkshire Hathaway’s Cash Reserves Reach Record-Breaking $382 Billion
Berkshire Hathaway’s cash reserves have swelled to an unprecedented $381.7 billion in the third quarter, marking a new record for Warren Buffett’s conglomerate. The massive cash pile comes alongside a 34% surge in operating earnings to $13.5 billion, driven largely by improved insurance underwriting income.
Despite the company’s strong performance, Buffett made no share buybacks for the fifth consecutive quarter and was a net seller of equities, offloading approximately $6.1 billion worth of shares. This cautious approach reflects the Oracle of Omaha’s view that current market valuations offer limited attractive investment opportunities.
The record cash hoard provides Berkshire with enormous flexibility for future acquisitions and investments when market conditions become more favorable. “There isn’t much opportunity in Buffett’s eyes right now,” noted analyst Jim Shanahan from Edward Jones, pointing to elevated asset prices and economic uncertainty.
This development is particularly significant as Buffett has announced plans to step down as CEO by the end of 2025, with longtime deputy Greg Abel set to take over. The massive cash position ensures his successor will have unprecedented resources to deploy when attractive investment opportunities arise.
Source: CNBC