2024-11-04 13:51:00
The investment company Berkshire Hathaway owned by US investor legend Warren Buffett (94) is continuing to reduce its stake in the iPhone company Apple. The IT manufacturer’s shares in its own portfolio were worth 69.9 billion US dollars (64.2 billion euros) at the end of the third quarter, as Berkshire Hathway announced in Omaha (Nebraska). At the end of June, Apple’s share was still worth $84.2 billion.
The price of Apple shares rose from $210.62 to $233 during the period. Mathematically, Berkshire sold around a quarter of its securities between the end of June and the end of September.
The cash at Berkshire Hathaway continues to swell significantly. The cash holdings rose to $325.2 billion, reaching a record level. Buffett has remained cautious about acquisitions recently. In May, he said at the annual shareholder meeting that he had no reservations about increasing cash holdings under the current circumstances. In the three months from July to September, Berkshire sold shares worth $34.6 billion.
In day-to-day business, Berkshire Hathaway’s holdings made an operating profit of $10.1 billion in the quarter, six percent less than a year earlier. Weak insurance business in particular had a negative impact.
The more liquid Berkshire Hathaway shares (B shares) have risen by a good quarter to $452 so far this year. With a recent price of $678,000, Berkshire’s A shares are the most expensive shares in the world. The group’s market value is almost $975 billion. In August, the company broke the $1 trillion mark in market value for the first time.
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**Interview with Financial Analyst Sarah Johnson on Berkshire Hathaway’s Recent Moves**
**Interviewer:** Thank you for joining us today, Sarah. Berkshire Hathaway has been making headlines again, particularly with Warren Buffett’s decision to reduce the company’s stake in Apple. What are your thoughts on this strategy?
**Sarah Johnson:** Thanks for having me. It’s quite an interesting move, especially since Apple has been a cornerstone of Berkshire’s portfolio. Reducing their stake could indicate that Buffett anticipates volatility in the tech sector, or perhaps he’s looking to reallocate funds into other areas.
**Interviewer:** That’s a valid point. With Berkshire’s cash pile now at a record $325 billion, do you think Buffett might be waiting for an ideal opportunity to make a significant acquisition?
**Sarah Johnson:** Absolutely. With such a substantial amount in cash, it’s clear that Buffett is keeping his options open. Historically, he’s made wealth-building acquisitions in downturns, so this could be a sign of his strategy to buy when others are fearful.
**Interviewer:** Interestingly, he’s also mentioned having no reservations about increasing cash holdings. Does that suggest a more defensive posture in today’s market?
**Sarah Johnson:** It does seem that way. Buffett’s cautious stance might reflect broader economic uncertainties. Maintaining liquidity gives him the flexibility to act quickly if compelling opportunities arise, especially in uncertain times.
**Interviewer:** With Apple shares rising during the same period that Berkshire is selling, do you think this could lead to a debate among investors? Some may see it as a sign of weakness or a lack of confidence in Apple, while others might interpret it as prudent risk management.
**Sarah Johnson:** Definitely. Investors could be divided. Some might argue that Buffett, known for his long-term strategy, is abandoning one of his best-performing assets, while others may see it as smart market timing. It opens up a broader discussion on how investors should assess company performance versus management strategy.
**Interviewer:** That could ignite a lively debate! Speaking of investment philosophies, what would you advise Berkshire’s shareholders to consider following these developments?
**Sarah Johnson:** Shareholders should evaluate their risk tolerance and investment goals in light of these moves. It’s important to understand that Buffett’s decisions often stem from a deeper analysis of market conditions. They might want to consider diversifying their portfolios, especially if they perceive that Berkshire may shift its focus in the near future.
**Interviewer:** Thank you, Sarah, for sharing your insights! Readers, what do you think? Is Buffett’s reduction in Apple shares a strategic misstep, or a smart maneuver in uncertain times? Let the debate begin!
