"Berkshire Hathaway's third-quarter earnings report on Saturday revealed Warren Buffett continued to sell more stocks than he bought with the legendary investor poised to step down as CEO by year's end. The conglomerate sold $12.5 billion of stock in the latest period and bought $6.4 billion, marking the 12th consecutive quarter of net selling. More details on specific stocks will come in a separate regulatory filing later this month."
"Meanwhile, Berkshire's cash hoard swelled to a fresh record high of $382 billion as operating earnings jumped 34% while Buffett held off on buying back stock for the fifth straight quarter. As the company's stock portfolio has shrunk, money has been shifting into Treasury debt. But with short-term rates falling recently, Berkshire's third-quarter net investment income dropped 13% to $3.2 billion."
"The cautious stance on stock investing began in 2022, when the Federal Reserve launched its most aggressive rate-hiking campaign in more than 40 years to rein in inflation. That tightening slammed stock valuations, but apparently not enough to trigger Buffett's bargain-hunting instincts. The Fed's subsequent pivot to rate cuts later sparked a rally that sent stocks to new highs."
Berkshire Hathaway sold $12.5 billion of stock and bought $6.4 billion in the third quarter, marking the 12th consecutive quarter of net selling. Cash rose to a record $382 billion while operating earnings jumped 34%. Buffett refrained from share buybacks for a fifth straight quarter. As the stock portfolio shrank, allocations shifted into Treasury debt, but falling short-term rates reduced third-quarter net investment income by 13% to $3.2 billion. The cautious approach began in 2022 amid the Federal Reserve's aggressive rate hikes that depressed valuations. Stocks later rallied after the Fed pivot, while Berkshire shares fell about 12% since Buffett announced his planned CEO transition to Greg Abel.
Read at Fortune
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