Berkshire Hathaway, led by Warren Buffett (Trades, Portfolio), has reported cash reserves exceeding $300 billion for the eighth consecutive quarter, primarily due to net stock sales. The company's Q3 2024 revenue stood at $92.995 billion, slightly less than the $93.21 billion from the previous year. Operating profit fell 6.2% year-over-year to $10.09 billion, with earnings per share of $18,272 and net profits at $26.251 billion. While the investment gains reached $20.514 billion, the prior year saw a loss of $29.778 billion.
Remarkably, Berkshire's cash reserves hit a record high of $325.2 billion, up from $276.9 billion at the end of Q2 and $189 billion at the end of Q1. The company net sold approximately $36.1 billion in stocks during the third quarter, including around 100 million shares of Apple (AAPL, Financial) and several billion dollars worth of Bank of America stock. This marks the eighth successive quarter of net stock sales by the company.
Interestingly, Berkshire did not execute any stock buybacks during this quarter, a first since Q2 2018. In August, Berkshire's stock hit an all-time high, with its market value surpassing $1 trillion. As of September 30, 2024, 70% of Berkshire's equity investments were concentrated in Apple, American Express, Bank of America, Coca-Cola, and Chevron, with market values of $69.9 billion, $41.1 billion, $31.7 billion, $28.7 billion, and $17.6 billion, respectively.
Particularly, after halving its Apple holdings in Q2, Buffett further reduced the company's Apple shares by 25% in Q3, bringing its holdings from 905 million shares down to 300 million shares, a reduction of approximately two-thirds. On October 31, Apple reported a revenue of $94.93 billion for its fourth fiscal quarter ending September 28, exceeding analysts' expectations of $94.36 billion, marking a 6% increase year-over-year. Net profit was $14.736 billion, compared to $22.956 billion the previous year.
Additionally, Apple provided a conservative forecast for the next fiscal quarter's total sales, anticipating a year-over-year growth in the "low to mid-single digits," whereas analysts had expected a 7% increase.
With the U.S. presidential election date approaching, Buffett, at 94, warned against the misuse of AI to falsely endorse political candidates, urging the public not to believe misleading statements about his support. On October 23, Berkshire issued a statement on its website emphasizing that Buffett does not endorse investment products or political candidates through social media, highlighting the prevalence of fraudulent claims regarding his endorsements.
Buffett expressed concerns to CNBC about impersonations online, stating, "I worry about someone impersonating me, which is why we placed this information on Berkshire’s website. No one should believe I am advising them on how to invest or vote."
